Changes Affecting FSA/HRA Card-Holders

Your neighborhood Bloom store has been happy to accept your Flexible Spending Account / Healthcare Reimbursement Account (FSA/HRA) card for the purchase of various healthcare and pharmacy items.

Beginning January 2008, new Internal Revenue Service regulations will be implemented regarding the use of FSA/HRA cards. In compliance with these regulations, Bloom is making changes to our store systems to help clearly identify the healthcare products which you can purchase using your FSA card. We are working diligently to provide this service for your convenience.

In the meantime, you may continue to use your FSA/HRA card Bloom pharmacy stores. While we are upgrading the systems in our other Bloom stores, you may still purchase these items, but you will not be able to use your FSA/HRA card as payment. Please be sure to contact your plan administrator for instructions on submitting receipts for the reimbursement of the cost of your Qualified Healthcare Products. Thank you for being a loyal shopper.

Frequently Asked Questions

What is FSA or HRA?
A Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA) a tax-favored program offered by employers that allows their employees to pay for qualified healthcare products and dependent care expenses with pre-tax dollar An FSA/HRA gives you an immediate discount on these expenses that equals the taxes you would otherwise pay on that money.

In other words, when using FSA/HRA, you can both reduce your taxes and get more for your money by saving from 20% to more than 40% you would normally pay for out-of-pocket health care and dependent care expenses with after-tax(as opposed to taxed) dollars.

What items are FSA-approved?
New IRS regulations have identified those products which can be purchased using your Flexible Spending Account. Following are certain categories of products that may qualify. Please contact your account administrator to verify which products are eligible through your plan, since program rules and regulations may vary.

• Aids to quit smoking
• Antibiotic ointments
• Asthma mist
• Blood pressure monitors
• Contact lenses and solutions
• Diabetes test strips
• Hydrogen peroxide
• Non-prescription aspirin
• Over-the-counter allergy and digestive medications
• Prescription co-pays

Are these products identified in your stores?
Initially, all approved product categories will be identified with signs on the aisles and by mid-year 2008 an FSA logo will be added the shelf-tags for all FSA-approved items.

Are all over-the counter items eligible?
The IRS has said that over-the-counter products used to treat injury or illness qualify for FSA reimbursement.

When can I begin using my Flexible Spending Account card in your stores?
Bloom is working diligently to make changes to our information systems to help clearly identify FSA-approved products which you can purchase using your FSA card. If you shop in one of our pharmacy stores, you can use this card now at the pharmacy register. We expect this service to be available at all our store registers in the summer of 2008. In the meantime, if your Food Lion store does not have a pharmacy, you may contact your plan administrator for instructions on submitting receipts for the reimbursement of the cost of FSA-approved products.

What if I pay out of pocket?
You may be able to submit your receipt for reimbursement from your FSA/HRA account. Please check with your healthcare provider or card issuer for more information.

What other forms of payment can be accepted?
Cash, Credit, Debit and Check

How do I get reimbursed?
Check with your employer or health care provider for this information

For more information visit:
www.fsafeds.com

Quick Reference Guide

Over-the-Counter Medicines & Products
Over-the-counter (OTC) medicines and products are reimbursable when the OTC product is used for medical purposes.

Eligible items include medicines or products that alleviate or treat injuries or illness for you and your dependents. These drugs and products are not cosmetic in nature, or merely beneficial to your general health.

OTC products that are not medicines or that merely benefit your general health may NOT reimbursable, such as vitamins without a Letter of Medical Necessity (LMN). Please check with your health care provider for more details.

Eligible OTC Expenses