Dear Client,

In the past few days, there has been a great deal of discussion and speculation about a very important piece of legislation which is currently being considered for a vote on the floor of the United States House of Representatives. House Resolution 5719, “The Taxpayer Assistance and Simplification Act of 2008” would require ALL HSA DISBURSEMENTS to be substantiated. Those in favor argue that there is too much potential for abuse if HSA expenses are allowed to be self-attested by account holders. Those against the Act claim the law could ultimately slow the growth of consumer driven health care. What we at DataPath would like you to know is that regardless of the outcome, we already have the technology in place to process such a requirement.

While we at DataPath are fierce advocates of the Consumer Driven Health Market, we have always been ahead of the curve in anticipating legislation which might affect our customers. Whether or not we agree that substantiation of HSA expenses should be legislated, we have always felt it was necessary to have a way to substantiate claims during the administration process and that is why we developed our HSAToday Platform such that Plan Service Providers have the ability, with the click of a button, to make substantiation of claims mandatory if their employers choose/need to do so. As a founding member of SIGIS, DataPath has been on the forefront of IIAS COMPLIANCE and our mySource debit card already uses Merchant Category Codes to substantiate claims at the point of sale. It’s also why we developed and patented the CLAIMSVAULT with the purpose of storing account holder claims and receipts. If an IRS issue should ever arise with an account holder who is using the CLAIMSVAULT, the account holder’ entire HSA history is available at your fingertips.

In much the same way as FSA expense substantiation is not required until 2011, there would also be a two year waiting period before “The Taxpayer Assistance and Simplification Act of 2008” would go into affect, during which time we would implement further improvements to make your workflow more efficient and compliant. The Act is expected to be voted on in the House of Representatives within the next two weeks and beyond that, it is impossible to know what will happen in the Senate. Again, either way, with DataPath, you are covered.

We felt it was important for you to be aware of this potential legislation and we will keep you informed as to any and all further developments.

As always, thank you for your business.