Evolution Benefits Automates New FSA Grace Period for Benny(R) Benefits Debit Cardholders

Evolution Benefits, the leader in electronic benefit payment systems technology, implemented another industry-leading card enhancement when the company recently announced it had successfully automated the features of the new IRS Flexible Spending Account (FSA) grace period provision into its Benny® debit card system.

In May 2005, the U.S. Treasury and IRS reduced the risk of the use-it-or-lose-it rule for Flexible Spending Account participants by allowing a grace period of two and one-half months after a cafeteria plan year ends to incur and apply expenses against the prior year's available funds. Most card vendors do not offer an automated solution to the grace period. As a result, cardholders have to submit a manual claim to get reimbursed for qualified FSA expenses incurred during the grace period being applied to their prior year's funds.

Evolution Benefits released two grace period options to its administrator partners in early December 2005. The card can access FSA funds from both the prior and current plan years in a single card swipe.

"We are excited to be one of the first to make it truly easy for cardholders to take advantage of this new FSA provision. There are over 200 employers already using the grace period feature on the card," said Kevin Blank, Evolution Benefits' executive vice president of sales, marketing and account management. "Evolution Benefits continues to lead in developing superior card technology because that's what it takes to simplify these benefits and maximize the convenience for cardholders."

"Our product development team is always looking for new ways to make reimbursement accounts simple and hassle-free for cardholders as well as benefits administrators," explained Matt Dallahan, Evolution Benefits' vice president of product development. "Benny® cardholders clearly understand the advantage of not having to pay twice and appreciate cutting out the paperwork through our automated substantiation capability. So for us, it's all about convenience. First, last and always."

Evolution Benefits, Inc. began operation in 2000 with a commitment to supporting the movement toward greater consumer choice in and responsibility for employee benefits. Its primary product, the Benny® benefits debit card, applies advanced payment technologies and pioneering electronic substantiation methodologies to FSAs, HSAs, HRAs, and Qualified Transportation Accounts, creating a bridge between traditional benefit structures and the evolving consumer-directed benefits movement. Evolution Benefits now powers the programs of more than 80 managed care and administrative services organizations and covers more than 1,900 employers, including 40 of the nation's top-ranked Fortune and Forbes companies. Visit www.EvolutionBenefits.com for more information.

Distributed by Market Wire