Medcom Benefit Solutions recently announced a significant and valuable expansion of its Consumer Driven Health Plan division with the introduction of a Disaster Relief Program. The program, Medcom Cares, assists employers looking for time-sensitive and creative financial ways for helping their employees dealing with furloughs, reduced hours, and layoffs due to the COVID-19 pandemic.

Medcom Cares is based on IRS Section 139: Disaster Relief Payments. Section 139 states that employers are allowed to provide "Qualified Disaster Relief Payments" to employees, tax-free, who are affected by a federally declared disaster. A qualified disaster relief payment means any amount paid to or for the benefit of, an individual to reimburse or pay reasonable and necessary expenses listed as the result of a disaster.

The Medcom Cares Card: The Basics

• Funds are made available by the employer to employees on a debit card
• The amounts provided are at the employer's discretion
• No substantiation is required
• No manual claims or reimbursements are accepted - the card is the only way to access the funds
• Employers can choose where employees spend their funds
• There are six merchant categories; employers can select them all or customize the list
• The program runs for 90 days
• Unused funds return to the employer
• All contributions are tax-free for the employee - no need to include on a W-2 or 1099

The Medcom Cares service falls under our CDHP account offerings but is a stand-alone program. If your employees already have a Medcom benefit plan debit card, like an FSA, the funds are not accessible through that card. The employees receive a separate card for the Medcom Cares service. Employers and employees have access to an online portal to check balances and view transactions. Different login credentials are given to those who participate. 

Merchant Categories:

• Grocery & Rx
• General Retail & Office Supplies
• Education & Childcare
• Healthcare
• Clothing
• Utilities

The proposal and implementation process for the Medcom Cares service is simple. After a general consultation with the broker/partner/employer, and the submission of a proposal, Medcom will set-up the implementation meetings and complete the program set-up. Once Medcom receives the employer funds, and payment for the administration fees, cards are mailed to the eligible participants. Typically cards arrive within 7-110 business days.

It is that simple.

However, if you'd like more information about the card, the process, or how it can be beneficial to your employers and their employees, watch our introductory webinar via our YouTube channel. You can always reach out to us directly, too. Contact our sales associate, Phillip Baker at pbaker@medcombenefits.com, or by calling (904) 596-2162. We are happy to answer any questions you have about this fantastic new service.