Headlines about "Health savings accounts (HSAs)"
Gathered from the web by the editors at BenefitsLink.com.
FSAs Could Be Sacrificed in Hunt for Health Overhaul Money
Excerpt: "FSAs, which allow consumers to put aside before-tax dollars to pay for medical expenses, are getting close scrutiny as Congress scours the health system for money to finance an ambitious expansion of insurance. The Joint Committee on Taxation told Senate leaders recently they could collect $68.6 billion over 10 years by abolishing the accounts, along with separate ones in which employers contribute money for workers to use for health care expenses. Eliminating both types of accounts would pay for four percent or more of the estimated $1 trillion to $1.5 trillion cost of expanding coverage to the 46 million uninsured." (Kaiser Family Foundation)
[Opinion] Letter to Senate Finance Committee Discussing Views on Health Care Reform Financing Options (PDF)
5 pages. Excerpt: "The evidence of the last five years shows that HSAs and other consumer-driven health plans are reducing or eliminating premium increases, providing health insurance for previously uninsured individuals, and reducing overutilization of unnecessary health care services. The result has been more increased personal responsibility and higher engagement in maintaining health and seeking the best value for the health care dollar being spent, all without having a negative effect on health outcomes. Implementing the suggested policy changes to the HSA would simply cripple one of the few health care reforms that are accomplishing the President's stated goals for health care reform." (Council for Affordable Health Insurance)
[Opinion] Curbing Flexible Spending Accounts Could Help Pay For Health Care Reform
Excerpt: "Congress should consider scaling back or eliminating health care flexible spending accounts (FSAs) as part of its effort to pay for health care reform. This paper, which is part of a series of papers on proposals to help pay for health reform, outlines several ways in which Congress could curtail FSAs." (Center on Budget Policies and Priorities)
[Guidance Overview] Bureau of Labor Statistics Data on Employee Access to 'Other Types of Benefits,' 1979-2008
Excerpt: "Table 3 also shows the percent of workers with access to 'other benefits' in 2008. . . . The benefits with the highest rate of worker access were work-related education assistance (50 percent) and employee assistance programs (42 percent). Among the benefits with lower access rates, 2 percent of workers in private industry had access to employer-provided personal computers for home use, and 3 percent of workers had access to employer provided child-care funds." (U.S. Bureau of Labor Statistics)
[Guidance Overview] Health Savings Accounts: Inflation-Adjusted Limits Are Released for 2010
Excerpt: "Under the HOPE Act, the following other changes were also made to the HSA rules: Larger Contributions for Non-Highly Compensated Employees . . . . One-Time Rollover from FSA or HRA . . . . Maximum Contribution if Eligible During the Last Month . . . . One-Time Rollover from IRA . . . ." (Deloitte via BenefitsLink.com)
[Opinion] Are CDHPs/HSAs Ready to Battle a Public Health Plan?
Excerpt: "In an attempt to resurrect CDHPs' standing and make them part of the healthcare reform debate, two reports released over the past week from the health insurance industry promote the idea of health savings accounts. But health insurers need more than just surveys given the heightened interest of a public health plan in Washington. The industry must improve on CDHP tools, such as cost and quality Web sites, real-time claims adjudication, and member outreach, in preparation of competition from a public health plan." (HealthLeaders Media via HCPro, Inc.)
Senate Committee Unveils Proposal for Modifying HSAs Under Health Reform
Excerpt: "A policy option paper released by the Senate Finance Committee on May 19 discusses proposed health system savings and revenue options, including modifications to HSAs. . . . The full document, Financing Comprehensive Health Care Reform: Proposed Health System Savings and Revenue Options, can be viewed at http://tinyurl.com/pc579e." (AISHealth.com)
[Guidance Overview] 2010 Minimums and Maximums for Health Savings Accounts Plans and High-Deductible Health Plans
Excerpt: "On May 14, 2009, the Internal Revenue Service (IRS) released Revenue Procedure 2009-29,1 which announced various inflation-adjusted amounts for 2010 for Health Savings Accounts (HSAs) and High-Deductible Health Plans (HDHPs). The IRS calculates the annual adjustments using the 12-month period ending March 31." (The Segal Group, Inc.)
[Guidance Overview] The 2010 HSA Contribution Limits and HDHP Minimum Deductibles and Out-of-Pocket Maximums
Excerpt: "EBIA Comment: The inflation-adjusted figures announced in this revenue procedure are not effective until 2010, but those working with HSAs and HDHPs will be glad to have these figures now as they plan both benefits design and employee communications for the coming year. On a related note, the annual catch-up contribution limit (for HSA-eligible individuals who are age 55 or older), set by statute, remains at $1,000 for 2010." (Employee Benefits Institute of America)
[Official Guidance] Text of IRS Rev. Proc. 2009-29: 2010 Inflation-Adjusted Amounts for Health Savings Accounts (PDF)
2 pages. Excerpt: "For calendar year 2010, the annual limitation on deductions . . . for an individual with self-only coverage under a high deductible health plan is $3,050. . . . [F]or an individual with family coverage under a high deductible health plan [it] is $6,150. . . . For calendar year 2010, a 'high deductible health plan' . . . [is] a health plan with an annual deductible not less than $1,200 for self-only coverage or $2,400 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $5,950 for self-only coverage or $11,900 for family coverage." (Internal Revenue Service)
Estimated Income Characteristics of HSA Accountholders in 2008 (PDF)
12 pages. Excerpt: "Although accountholders in all neighborhood income ranges used their HSAs, those in higher income ranges tended to make larger deposits and withdrawals. For example, during calendar year 2007 accountholders residing in areas with median incomes between $25,000 and $50,000 (in 1999 dollars) experienced average HSA inflows (personal deposits, employer contributions and interest earnings) of $1,401 and average outflows (personal spending and fees) of $936. For accountholders in neighborhoods with median incomes between $75,000 and $100,000 (in 1999 dollars), average HSA inflows in 2007 were $2,083 and average outflows were$1,320." (America's Health Insurance Plans)
January 2009 Census Shows 8 Million People Covered by HSA Qualified High-Deductible Health Plans (PDF)
16 pages. Excerpt: "The number of people with HSA/HDHP coverage rose to 8.0 million in January 2009, up from 6.1 million in January 2008, 4.5 million in January 2007, and 3.2 million in January 2006. Between January 2008 and January 2009, the fastest growing market for HSA/HDHP products was large-group coverage which rose by approximately 35 percent, followed by small-group coverage which similarly rose at 34 percent." (America's Health Insurance Plans)
Workers Want to Know How CDHPs Work for Them, Not the Company
Excerpt: "Of course, we know that communication is critical to launching these plans and getting employees to enroll, especially when traditional options are still on the table. Where I see companies stumble is in keeping too much focus on the big picture instead of really explaining what the plans mean for individual workers. You can be guaranteed that eyes will glaze over at the first mention of the 'millions of dollars' spent on health care. You can explain the company's investment in health care and the dollars added to each individual employee's salary in the form of medical benefits. And, you can use examples and simple profiles to show how the plans work and their value, without overwhelming employees with facts and figures. In-person (or virtual) meetings are of huge benefit too -- don't just pile on the print materials and expect employees to dig through it all." (Employee Benefit Adviser)
Diagnosis HSA ? A Treatment Plan for Employers (PDF)
6 pages. Excerpt: "As the economy continues to contract globally U.S. employers are seeking and finding benefit plan design and funding solutions to control and manage both short- and long-term costs. So what is the diagnosis for Health Savings Account (HSA) qualified plans and HSAs specifically? At the heart of the most innovative approaches is a combination of High-Deductible Health Plan (HDHP) design features joined with a tax-advantaged HSA. According to the Kaiser Family Foundation, HSA-qualified plans reduce the premiums to offer health insurance and the savings nearly offset all of the deductible." (Buck Consultants)
HSA Basics: A Tri-Fold Brochure for Use in 2009 (PDF)
Can be reproduced, distributed and displayed freely. (U.S. Department of the Treasury)
Benefits Card Increases Appeal of Tax-Favored Accounts
Excerpt: "Health care consumers report the availability of benefits cards positively influenced their decision to sign up for tax-favored accounts including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), or Health Reimbursement Arrangements (HRAs), according to the results of the Evolution Benefits Consumer Experience Survey." (PLANSPONSOR.com; free registration required)
[Guidance Overview] IRS Explaination on Why Standard Mileage Rate for Medical Expenses Is Substantially Less Than Rate for Business Expenses
Excerpt: "Transportation expenses that are deductible medical expenses under Code Section 213 generally can be paid or reimbursed on a tax-free basis by a health FSA, HRA, or HSA. (Some employers' health FSAs or HRAs exclude medical transportation expenses from the list of reimbursable items to simplify plan administration.) The explanation in the information letter can help health FSA and HRA administrators, who may be asked why the medical and business rates differ so much." (Employee Benefits Institute of America)
Health Savings Accounts and Preventive Care (PDF)
3 pages. Excerpt: "Employers and individuals are increasingly looking to consumer driven health plans like Health Savings Accounts (HSAs) to help rein in expenditures. Unfortunately, there is a common misperception that HSAs discourage preventive care. However, not only do most HSA plans provide first-dollar coverage for preventive care, but use of preventive services is higher for persons enrolled in these plans. In addition, the HSA provides a tax-free way to pay for preventive care services even when not covered by an insurance plan." (The Council for Affordable Health Insurance)
[Opinion] Health Savings Accounts As an Investment
Excerpt: "Much has already been written about the wisdom, or lack thereof, of health savings accounts (HSAs) and the high-deductible health plans that are linked with them. By design, they benefit higher-income individuals who are able to take advantage of the regressive tax policies, and who remain healthy, allowing the savings to accumulate for use in their retirement years. But they don't work for individuals with modest incomes who have significant health care needs." (Physicians for a National Health Program)
HSAs Can Help Pay Retirement Health Costs
Excerpt: "Health-care expenses are becoming an even bigger part of the retirement equation, and more experts are recommending a health savings account to help solve it. Money from HSAs can be used not just for current health-care expenses, such as co-pays and deductibles, but to save for future expenses, such as Medicare premiums, on a tax-free basis. In 2009, the maximum annual contributions are $3,000 for individuals and $5,950 for families." (The Wall Street Journal)
HSAs Continue Ascension in Spite of Sour Economy
Excerpt: "With more than six million individuals enrolled in health plans linked to HSAs at the start of the year, assets under management were valued at roughly $6.75 billion, with accounts growing at 40 percent to 60 percent per year, according to Boston-based research firm Celent. The Employee Benefit Research Institute says that more individuals are reporting account balances of at least $1,000 - 43 percent in 2008 compared to 25 percent in 2006 - and that that fewer reported zero balances in 2008 than two years earlier. It also found that the percentage of accountholders with no rollover fell from 23 percent to 16 percent from 2006 to 2008, while the percentage of those rolling over $1,500 or more spiked from 13 percent to 27 percent in that span." (U.S. Banker and SourceMedia, Inc.)
HSA Asset Portability Creates New Opportunities for Banks
Excerpt: "[C]onsumers are catching on to the fact that they can take their HSAs to any bank that offers custodial services, especially when they leave an employer. 'And in today's economy, many employees are being forced to leave,' . . . . He notes that a growing number of insurance products are becoming more 'plug and play' in nature, meaning that HSAs can be linked to any compatible high-deductible health plan." (AISHealth.com)
[Guidance Overview] How the New Healthcare Privacy Law Affects Banks' Products
Excerpt: "Pepper Points - The changes to HIPAA brought by the HITECH Act are aimed at enhancing privacy and security and thereby improving the chain of trust in a nationwide health information technology (HIT) infrastructure, including electronic health records and health information exchanges. As trust increases, more covered entities and patients will use HIT, leading to the creation and delivery of new medical banking services." (Pepper Hamilton LLP)
When Is $100 Worth $155? If You're in 28 Percent Tax Bracket, That's the Value of Paying for Personal Expenses with Pre-Tax Dollars
Excerpt: "Any time you take advantage of a tax savings opportunity, less of your hard-earned money goes to taxes and, therefore, more ends up in your pocket. So, let's . . . review some of the tax breaks available to you these days." (The Boston Globe)
A Preliminary Analysis of Health Savings Account Balances, Contributions and Withdrawals, 2007 and January?June 2008 (PDF)
10 pages. Excerpt: "The average balance for all HSA accounts open as of June 2008 was $1,449.3 Average balances ranged from $747 for accounts opened in the first six months of 2008 to $1,080 for accounts opened in 2007, $1,736 for accounts opened in 2006, $1,766 for accounts opened in 2005, and $3,125 for accounts opened in 2004 or earlier (including rollovers from Archer Medical Savings Accounts)." (America's Health Insurance Plans)
[Opinion] Health Savings Accounts Are Ill-Advised
Excerpt: "Critics of health savings accounts counter that the plans favor the healthy and wealthy, and can increase medical costs for everyone else by requiring people to take out high-deductible insurance policies that kick in only after thousands of dollars in healthcare expenses have been rung up. 'Most people can't even afford to put money into the account,' said Jerry Flanagan, health policy director for Consumer Watchdog in Santa Monica. 'All the money goes into premiums and deductibles.'" (Los Angeles Times via)
Health Savings Accounts and High-Deductible Health Insurance Plans: Implications for Those with High Medical Costs, Low Incomes, and the Uninsured
Excerpt: "The authors note that: HSA/HDHPs are a highly tax-advantaged savings vehicle appealing to people who have high incomes and to those who are expected to have low use of health care services. For the uninsured, these approaches are less attractive since they often have low income and neither benefit significantly from the tax advantages now have the financial assets necessary to cover the large deductibles associated with the plans. Their ability to reduce system-wide spending is very limited.The plans have the potential to increase segmentation of health care risk in private insurance markets unless employers set premiums to offset the healthier selection into the plans or government subsidizes the higher costs associated with the remaining non-HSA market." (Urban Institute / Robert Wood Johnson Foundation)
HSAs Could Be Boon for Banks
Excerpt: "The Health Savings Account (HSA) business has apparently been kind to bank-based HSA providers, according to a new research report on the niche market segment. The market analysis by Celent indicated that the upward trend is due to the rising cost of health care and the increased adoption of HSA-qualified consumer directed health plans (CDHP). For the six-month period from January to July 2008, accounts grew by 22%, while total balances grew by 40%.' Given the financial industry's current liquidity crisis, such balance gains should come as very welcome news,' Celent commented in the report." (PLANSPONSOR.com; free registration required)
Health Savings Accounts and High-Deductible Health Plans: Fighting the Spiraling Cost of Health Insurance for Companies and Employees (PDF)
7 pages. Excerpt: "An editorial by Steve Forbes on Health Savings Accounts presented the most intriguing partial solution. After a lot of research (and despite our small size of fewer than 50 eligible employees), we decided to give our employees a choice between a traditional but somewhat costly Point of Service (POS) plan, as we had always offered, and a newer, high-deductible health plan (HDHP) accompanied by a Health Savings Account (HSA). Overall, that decision has proved to be one of the best moves we've ever made." (Institute of Management Accountants, Inc.)
[Guidance Overview] 2009 Reporting Forms and Instructions for HSA, Archer MSA, and Medicare Advantage MSA Trustees and Custodians
Excerpt: "EBIA Comment: Remember that these 2009 forms aren't to be used by trustees and custodians until 2010, when reporting for the 2009 tax year is due. We note that the mention of economic stimulus payments in the Form 1099-SA instructions for 2009 presumably relates to IRS guidance allowing individual account holders to withdraw without penalty payments made by direct deposit under the Economic Stimulus Act of 2008 . . . ." (Employee Benefits Institute of America)
[Guidance Overview] IRS's 2008 Version of Publication 969 on HSAs, HRAs, Health FSAs,and MSAs
Excerpt: "EBIA Comment: Publication 969 is a handy tool for comparing the basic features of various consumer-driven health care vehicles without getting too bogged down in the details. The updated version of Publication 969 is also a reminder of the considerable amount of pertinent guidance that the IRS issued in 2008, particularly on HSAs." (Employee Benefits Institute of America)
2008 Version of Form 8889 Released for Use by HSA Account Holders
Excerpt: "EBIA Comment: Perhaps the biggest surprise in the 2008 versions is the Instructions' explanation of how to take a current year deduction for undistributed excess contributions from previous years -- something we have not seen addressed previously. On the whole, however, the 2008 versions remain substantially similar to their 2007 counterparts, which were significantly overhauled to reflect HSA changes made by the Tax Relief and Health Care Act of 2006 (TRHCA)." (Employee Benefits Institute of America)
How Large Employer Health Plans Are Managing Change to Consumer-Driven Healthcare Model
3 pages. Excerpt: "This article provide tips on how to manage that change [to tax-advantaged heath accounts and wellness programs] -- how to accomplish a paradigm shift that affects every employee with a minimum amount of disruption." (Dorsey & Whitney LLP; Reprinted from BNA's Health Plan & Provider)
Shock and Awe on Wall Street May Pressure Custodians of Health Savings Accounts to Drop Rates and Consolidate
Excerpt: "The economic nuke that nearly leveled Wall Street . . . could lead to new pressure for financial firms to lower the interest rates they pay on health savings accounts (HSAs) and/or increase or add administrative fees, industry observers suggest. Some HSA custodians, however, say they expect to feel few, if any, tremors." (AISHealth.com)
Towers Perrin U.S. Legislative Tracking Chart: Health & Welfare (PDF)
25 pages. Excerpt: "These charts summarize selected federal legislation that would affect employee benefit programs. The bills included on the charts are based on judgments regarding the prominence of the issue, the likelihood of enactment, and the influence of the sponsors." (Towers Perrin)
Healthcare Providers Enjoy Year-End Rush as Health Plan Participants Beat Deductibles Deadline
Excerpt: "It's the Year-End Mini-Boom, a new phenomenon brought on by health insurance plans with deductibles. . . . Early in the year, patients are more likely to hold off getting care because they are paying out of pocket. Later in the year, some have paid enough to reach their deductible and insurance kicks in. At that point, insurance covers most medical services [including many that are elective] . . . ." (StarTribune.com)
Availability, Contributions, Account Balances, and Rollovers in Account-Based Health Plans (PDF)
Pages 1-12 of 16 pages. Excerpt: "This report presents findings from the 2008 EBRI Consumer Engagement in Health Care Survey, as well as earlier surveys, examining the availability of HRA and HSA-eligible plans (so-called consumer-driven health plans). It also looks at employer and individual contribution behavior, time enrolled in such plans, account balances, and rollover behavior." (Employee Benefit Research Institute)
Industry Observers Predict Obama Administration, New Congress May Try to Dismantle HSAs
Excerpt: "Since January 2004, heath savings accounts (HSAs) have been a key component of the Bush administration's health policy. But some industry observers contacted by AIS predict that the incoming Obama administration and 111th Congress could work to dismantle the accounts, or at least erect barriers to make them less attractive. Others contend that the Obama administration and Congress are more likely to simply ignore account-based coverage, which is not likely to fit into any of their health reform efforts." (AISHealth.com)
[Opinion] American Benefits Council Comment Letter to IRS on Proposed HSA Regulations (PDF)
7 pages. Excerpt: "The American Benefits Council (the Council) appreciates the opportunity to comment on the proposed regulations regarding employer comparable contributions to health savings accounts (HSAs) and the taxpayer requirements for filing of excise tax returns with respect to Internal Revenue Code sections 4980B and 4980F (Proposed Regulations)." (American Benefits Council)
[Guidance Overview] The Tax, Savings and Health Spending Advantages of Health Savings Accounts (PDF)
13 pages. Excerpt: "This policy brief offers a discussion of the advantages of HSAs relative to Individual Retirement Accounts (IRAs) and other savings options. . . . The guidance includes such topics as: The ability to rollover funds from an IRA into an HSA; the 'testing period' for such rollovers; rules for individual and family eligibility; rules for contribution eligibility; rules for tax reporting; rules for HSA account transactions; rules for Medicare beneficiaries; [and] penalties for misuse." (Council for Affordable Health Insurance)
Findings From the 2008 EBRI Consumer Engagement in Health Care Survey
Excerpt: "[The study] provides nationally representative data regarding the growth of account-based health plans and high-deductible health plans (HDHPs) and the impact of these plans and consumer engagement more generally on the behavior and attitudes of adults with private health insurance coverage." (Employee Benefit Research Institute)
[Guidance Overview] Hewitt's Global Retirement Update for November 2008
Excerpt: "Our Global Retirement Update summarizes recent legislative developments and trends related to retirement and financial management and highlights recently passed and pending legislation that may require employers to take action to comply with new rules or review existing plans." (Hewitt)
High-Deductible Health Plans Might Flourish in Economic Downturn
Excerpt: "Health insurers are aggressively marketing high-deductible insurance plans that allow patients to reduce their out-of-pocket costs by improving their health. But employers, concerned with legal issues and upsetting employees, have largely stayed away. A prolonged recession could change that, consultants and health insurers say." (Workforce Management)
What Can a Health Savings Account Do for You? The Tax, Savings, and Health Spending Advantages (PDF)
13 pages. Excerpt: "This policy brief offers a discussion of the advantages of HSAs relative to Individual Retirement Accounts (IRAs) and other savings options. As well, the brief includes an overview of the latest three notices ? 2008-51, 2008-52, and 2008-59 ? all released in recent months." (Flint Hills Center for Public Policy via Council for Affordable Health Insurance)
Will Consumer-Directed Health Plans Survive Obama/Democratic Rule?
Excerpt: "Paul Fronstin, senior research associate at the Employee Benefit Research Institute in Washington, D.C., agrees that the Obama administration 'certainly won't be friendly toward HSAs, and is highly unlikely to support anything that expands them.' However, he says that with millions of Americans already enrolled in an account-based plan, it is 'highly unlikely that the administration will do anything to prohibit or stunt their growth.'" (AISHealth.com)
[Guidance Overview] Links to 2008 Q&As Submitted by Benefits Attorneys to Various Benefits-Related Federal Agencies
These links are not new, but the documents are interesting and useful enough that we wanted to be sure you know about them. Especially interesting are DOL answers about claims procedures and IRS answers about section 409A. Excerpt: "Each year, the Joint Committee on Employee Benefits (JCEB) of the American Bar Association meets with officials of federal agencies in Washington, D.C., to discuss issues of interest to employee benefits practitioners. This year the JCEB met with the IRS, DOL, SEC, PBGC, EEOC, HHS and CMS. . . . The question and answer transcripts listed below are based on these informal discussions between private sector representatives of the JCEB and agency officials." (Joint Committee on Employee Benefits, American Bar Association)
Health Plan Trade Group Suggests HSA Contribution Tax Law Changes
Excerpt: "A health plan trade group has asked the Internal Revenue Service (IRS) to delay the deadline for filing excise tax returns and payments for noncompliance under Sections 4980B and 4980D of the tax code. Thomas Wilder, senior regulatory counsel at America's Health Insurance Plans (AHIP), suggested in a letter to the tax agency that the final version of its rules concerning employer contributions to employee health savings accounts and related excise tax returns and payments should include a date for compliance that is three months after the end of the current non-compliance period. The deadline could also be 90 days after the employer's income tax return due date -- whichever is later." (PLANSPONSOR.com; free registration required)
[Official Guidance] IRS Cancels Oct. 30 Hearing on Employer Comparable Contributions to HSAs; Nobody Asks to Speak
Excerpt: "This document cancels a public hearing on proposed rulemaking providing guidance on employer comparable contributions to Health Savings Accounts (HSAs) under section 4980G of the Internal Revenue Code as amended by sections 302, 305, and 306 of the Tax Relief and Health Care Act of 2006. The proposed regulations also provide guidance relating to the requirement of a return to accompany payment of the excise tax under section 4980B, 4980D, 4980E or 4980G of the Code and the time for filing that return." (Internal Revenue Service)
Health Insurers Reinvent Themselves As Money Managers
Excerpt: "Many rush to open banks as more Americans open health savings accounts, a tax-sheltered way to pay medical bills. Managing that money is more profitable than offering health insurance." (Los Angeles Times)
Health Insurers Look To Open Banks as More People Enroll in Health Savings Accounts
Excerpt: "The Los Angeles Times on Wednesday, in the second installment of a three-part series about the U.S. health insurance system, examined a 'fundamental change' in the health care industry: 'Insurers are moving away from their traditional role of pooling health risks and are reinventing themselves as money managers -- providers of financial vehicles through which consumers pay for their own health care.'" (Kaiser Family Foundation)
[Guidance Overview] 2009 Limits for Benefit Plans
4 pages. Excerpt: "Each year, the U.S. government adjusts the limits for pension plans, Social Security, Medicare, and other benefit programs to reflect price and wage inflation, and changes in the law. As a result, employee benefit specialists must annually adapt their benefit plans to accommodate the new limits." (Aon Consulting)
Wall Street Concerns May Pressure Custodians of Health Savings Accounts to Drop Rates and Consolidate
Excerpt: "The economic nuke that nearly leveled Wall Street this month could lead to new pressure for financial firms to lower the interest rates they pay on health savings accounts (HSAs) and/or increase or add administrative fees, industry observers suggest. Some HSA custodians, however, say they expect to feel few, if any, tremors." (AISHealth.com)
Employees Will Open HSAs - if Their Bosses Kick In
Excerpt: "UnitedHealthcare came out with a survey of its customers . . . that showed 86% of people opened an HSA if their employer offered up a contribution. That's compared to 27% when the employers kept their purse-strings tight, according to United. About two thirds of employers contribute to the accounts." (The Wall Street Journal)
[Official Guidance] Text of IRS Notice 2008-82: Use It or Lose It HSA Rule Inapplicable to Reservists Called to Active Duty (PDF)
7 pages. The Heroes Earnings Assistance and Relief Tax Act of 2008, enacted June 17, 2008, provided a special rule allowing 'qualified reservist distributions' (QRDs) of unused amounts in a health FSA to reservists called to active duty. Under the existing rules for health FSAs, distributions could only be made to reimburse substantiated medical expenses, and any funds left unspent at the end of the plan year would be lost. This special rule allows reservists to make a distribution before leaving for active duty so as not to lose those savings. (Internal Revenue Service)
Emerging Cost Containment Strategies
Excerpt: "Account-based health plans (ABHPs) are emerging as a solution that employers are embracing to maintain affordability for employees and retirees, Towers Perrin says. . . . Most ABHPs set for implementation in 2009 will have an HSA feature (rather than an HRA feature), indicating employers' interest in providing wealth accumulation vehicles for retiree medical benefits." (PLANSPONSOR.com; free registration required)
The True Cost of High-Deductible Health Plans for Communities of Color (PDF)
12 pages. Excerpt: "This issue brief discusses three serious concerns that make high-deductible health plans less helpful -- or even potentially harmful -- for racial and ethnic minorities: 1. Out-of-pocket costs in high-deductible plans are simply unaffordable for many racial and ethnic minorities. 2. The heavy costs of high-deductible plans will force many minorities to delay or avoid necessary care. 3. The barriers created by high-deductible plans will aggravate the health disparities that already plague many minority communities." (Families USA)
Treasury and Small Business Administration Launch New HSA Website for Small Businesses and Their Employees
Excerpt: "The Treasury Department and the federal Small Business Administration (SBA) have announced a new SBA website that provides small business owners and their employees with information about health savings accounts (HSAs). And the White House has simultaneously issued a fact sheet that describes how HSAs are helping small businesses provide health benefits to their employees." (Employee Benefits Institute of America)
HSAs, FSAs, HRAs: Which Consumer Driven Health Care Option Should You Choose? (PDF)
2 pages. Updated for 2008 and 2009 Excerpt: "Unfortunately, many consumers and employers are confused about the differences between the various consumer-driven plans and which option would be best for them. The Council for Affordable Health Insurance (CAHI) has prepared this analysis [in chart form] in an effort to help people make informed choices." (The Councial for Affordable Health Insurance)
Health Savings Accounts and High-Deductible Health Plans: A Data Primer (PDF)
6 pages. Excerpt: "Before analysts can evaluate the effects of HSAs, they must decide which data source(s) to use. This primer provides basic guidance in that direction. The primer also provides the most recent data available from each source on enrollment, premiums and deductibes for HSAs, HSAs and HRAs combined, and HDHPs." (U.S. Congressional Research Service)
[Guidance Overview] Upon Establishing a Health Savings Account, Must Custodian/Trustee Ask for Proof the Individual Is Covered by a High-Deductible Health Plan?
Excerpt: "No. IRS Notice 2004-2, Q&A-10 indicates that an HSA custodian/trustee may require proof or certification that the individual is indeed covered by a high-deductible health plan but there is no requirement to do so." (Wolters Kluwer)
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