WOONSOCKET, R.I., June 18 RI-CVS/pharmacy-HSA
WOONSOCKET, R.I., June 18 /PRNewswire/ -- According to a recent study(1),
more than 6.1 million Americans are currently enrolled in health savings
account (HSA)-eligible insurance plans, a 35 percent increase since last year.
Consumers are increasingly turning to health savings and flexible spending
accounts (FSAs) to cut costs associated with health care. CVS/pharmacy,
America's largest retail pharmacy with 6,300 convenient locations nationwide,
is making it easier for shoppers enrolled in HSAs and FSAs to save money and
track eligible health purchases as part of its ExtraCare rewards program.
As part of a new system rolled-out nationwide in early 2008, CVS/pharmacy
checkout counters now provide shoppers with easy-to-read register receipts.
The new receipts highlight prescription medicines, over-the-counter (OTC)
remedies and other qualifying purchases so they can be easily identified and
tracked with a special symbol indicating which items are HSA/FSA-eligible. To
make redemption of HSA/FSA funds as easy as possible, CVS/pharmacy register
receipts also present separate sub-totals for items that are HSA/FSA-eligible.
HSA/FSA participants save money by setting aside pre-tax dollars for
prescription co-pays, OTC medications and other health-related purchases.
ExtraCare members who choose CVS/pharmacy for HSA/FSA-eligible purchases save
money and time by eliminating the hassle previously associated with validation
of HSA/FSA claims. ExtraCare cardholders still receive quarterly Extra Bucks
earned for HSA/FSA-eligible transactions, as well as any applicable instant
rewards.
"The use of health savings accounts and flexible savings programs has
grown dramatically over the past two years," said Rob Price, senior vice
president of marketing for CVS/pharmacy. "But many consumers don't realize
that managing their funds throughout the year can be simple and, more
importantly, can result in significant cost-savings, particularly for those
with chronic conditions. CVS/pharmacy remains committed to improving the lives
of our customers, and helping them save money on everyday health costs is a
major component of that mission."
Easier than ever to use "flex cards" at the register
An increasing number of consumers participating in FSAs rely on FSA debit
cards loaded with predetermined limits. Consumers who present these "flex
cards" to complete a transaction at CVS/pharmacy will experience the immediate
benefit of the FSA sub-total being deducted directly from the shopper's flex
card, while the remaining total for non-FSA items will be organized for the
shopper to purchase with an alternative method of payment. Some FSA programs
or third-party administrators may request proof of an automatically submitted
claim by way of receipt, so participants are encouraged to save receipts that
contain FSA-eligible purchases made with a flex card.
Organizing and tracking spend throughout the year
Cardholders can call a toll-free number (1-800-SHOP-CVS) to receive a list
of HSA/FSA-eligible purchases made with their ExtraCare card. This statement
can be used to substantiate FSA-eligible purchases made with an ExtraCare card
going back 14 months. Cardholders receive their HSA/FSA-purchase statement by
U.S. mail within five business days of making the request (or sooner, if
callers request an email version of the statement). CVS/pharmacy provides this
service free of charge to ExtraCare cardholders. Cardholders that do not
participate in FSAs may still receive a free list of FSA-eligible purchases.
These lists help shoppers by supplying enough information to forecast
HSA/FSA-eligible spending for future HSA/FSA withholdings or to substantiate
tax deductions pertaining to health and medical expenses.
Details: FSAs and HSAs
Health savings accounts and flexible spending accounts are made available
by many U.S. employers as part of company health benefits. HSAs and FSAs allow
an employee to set aside a portion of his or her pre-tax earnings to pay for
health care expenses not covered by health insurance plans. Money deducted
from an employee's pay into a HSA/FSA is not subject to payroll taxes,
resulting in substantial payroll tax savings. Common costs covered by HSAs and
FSAs include prescription drug co-payments and OTC products ranging from cold
and flu remedies and allergy treatments to eye care products and blood
pressure monitors.
Virtually all FSAs have "use it or lose it" policies which establish
annual deadlines for redemption of the available funds; these policies are
determined by employers but a majority are arranged to correspond with the
calendar year, meaning that all funds not used on or before December 31 are
lost to the account holder. Some HSAs are automatically rolled over for future
medical expenses but policies may vary.
ExtraCare basics
CVS/pharmacy's ExtraCare program is the largest consumer rewards program,
with more than 50 million cardholders. Cardholders receive 2% of most
purchases back quarterly, delivered in the form of free "CVS money" called
Extra Bucks. Additionally, members receive benefits such as instant targeted
offers on register receipts. More than ten million ExtraCare members have
enrolled in CVS/pharmacy's email alerts program, which delivers additional
coupons and health and beauty information directly to shoppers' email inboxes.
About CVS/pharmacy
CVS/pharmacy, the retail division of CVS Caremark Corporation (NYSE: CVS),
is America's largest retail pharmacy with 6,300 retail locations. CVS/pharmacy
is committed to improving the lives of those we serve by making innovative and
high-quality health and pharmacy services safe, affordable and easy to access,
both in its stores and online at CVS.com. General information about
CVS/pharmacy and CVS Caremark is available at http://www.cvs.com/pressroom, as
well as http://investor.cvs.com.
(1) 2008 census released by America's Health Insurance Plans (AHIP),
available online at: http://www.ahipresearch.org/pdfs/2008_HSA_Census.pdf.
Contact: Mike DeAngelis of CVS/pharmacy, +1-401-770-2645,
MJDeangelis@cvs.com
SOURCE CVS/pharmacy
