Reimbursement for Non-Qualified Expenses for Flex Plan Transactions. At the time of each Employee’s enrollment in the Plan and in the Cardholder Agreement, the Employee will agree to reimburse the Employer for the amount of any Transaction that was not for a Qualified Expense. For Transactions determined by the Employer or TPA to be for non-qualified expenses (“NQE”), the Employee will automatically be notified of a balance due on the website and will be sent a communication (email or postal mail) informing him or her of the amount due. The Employer is ultimately responsible for repayment to the Medical Mutual for any NQE transactions not refunded by the Employee. The Employer may, to the extent allowed by applicable law, withhold the amount at issue from the Employee’s pay or may xxxx the Employee. However, the Employer is responsible for determining whether applicable law will permit the Employer to withhold such amounts and should consult legal counsel concerning such withholding. If the claim still remains outstanding, the Employer must offset the amount thereof against future claims under the Program. The Employer must also take action to ensure that further violations do not occur, including denial of access to the Card. In the event the amount cannot be collected from the Employee, the Employer must nevertheless pay such amount to the Medical Mutual and treat the amount due as it would any other business indebtedness.
