Headlines about "Health savings accounts (HSAs)"
Gathered from the web by the editors at BenefitsLink.com.
[Guidance Overview] ITS Regulations on Employer Comparable Contributions to HSAs
Excerpt: "The regulations also address comparability rules for qualified HSA distributions, which are direct distributions from health flexible spending accounts (FSAs) or health reimbursement accounts (HRAs) to HSAs. If an employer offers qualified HSA distributions to any employee, the employer must offer such distributions to all employees who qualify as eligible individuals under any HDHP. Conversely, an employer may offer qualified HSA distributions to eligible individuals enrolled under the employer's HDHP but not to eligible individuals who are not enrolled in the HDHP. The final regulations on HSA comparable contributions apply to employer contributions made on or after Jan. 1, 2010." (Watson Wyatt Worldwide)
Research Shows Employers That Adopt Consumer-Driven Health Plans Favor Health Saving Accounts As Key Funding Option
Excerpt: "The analysis is based on survey results of 370 employers polled in the summer of 2009. In the issue brief titled 'CDH plans shift to HSAs', researchers report that 44% of employers offer a CDH plan to their workers, a slight fall from 2008 (45%) but up from 28% in 2006." (Employee Benefit News; free registration required)
Employers Prefer HSAs in CDHP Offerings, According to Survey
Excerpt: "Among employers who offer a consumer-driven health plan (CDHP), health savings accounts (HSAs) continue to be the preferred funding choice, according to a survey by Aon Consulting and the International Society of Certified Employee Benefit Specialists. Of the 370 survey respondents, 44% of employers currently offer a CDHP to employees - similar to last year, according to a press release. Of those offering CDHPs this year, 56% are now using the HSA model, 35% are using the Health Reimbursement Arrangements (HRA) model, and 9% use both. Over the last three years, the gap has widened between HSAs and HRAs, as the number of employers offering HSAs has gone from 48% to 56%, and the number offering HRAs has dropped from 43% to 35%." (PLANSPONSOR.com; free registration required)
Research Shows Attaching a Debit Card to an HSA Is Key Driver of Enrollment
Excerpt: "The debit card 'adoption and use continue to grow and grow rapidly,' says Jody Dietel, a compliance officer at WageWorks, a San Mateo, Calif.-based firm that administers flexible spending accounts, health savings accounts, health reimbursement arrangements and health care cards. 'The technology is increasing and improving rapidly. [The debit cards] continue to be a widely adopted and widely appreciated tool for consumers.'" (Employee Benefit News; free registration required)
Employers Drop, Shift Contributions to Consumer-Directed Health Plans
Excerpt: "[E]mployees with family coverage in a CDHP saw their employer contributions rise this year. The percentage of workers with CDHP family coverage receiving an employer contribution of at least $1,000 stood at 79% in 2009, up from 59% in 2008. The share of the adult population enrolled in account-based health plans remains small and growing slowly, the survey confirmed. In 2009, 4% of adults with health insurance were enrolled in an HRA or had a high-deductible plan with an HSA . . . ." (Employee Benefit Adviser; free registration required)
Availability, Contributions, Account Balances, and Rollovers in Account-Based Health Plans, 2006?2009
Excerpt: "The share of the adult population with private health insurance enrolled in account-based health plans (so-called 'consumer-driven' health plans, or CDHPs) remains small but continues to grow. In 2009, 4 percent of the adult population with private health insurance was enrolled in an health reimbursement arrangement (HRA) or had a high-deductible plan with an health savings account (HSA), up 1 percentage point from the previous year." (Employee Benefit Research Institute (EBRI))
[Guidance Overview] New Treasury Regulations Require Group Health Plans to Self-Report Excise Tax Liability
Excerpt: "Beginning January 1, 2010, plan sponsors (plan administrators for multiemployer plans) will need to self-report excise tax liabilities for failure to meet certain health plan requirements, including requirements under: * COBRA; * HIPAA's portability and nondiscrimination rules; * Newborns' and Mothers' Health Protection Act; * Mental Health Parity and Addiction Equity Act; * Health savings account comparability provisions; * Michelle's Law; * Genetic Information Nondiscrimination Act (GINA)" (Ballard Spahr)
[Guidance Overview] Chart of 2009 and 2010 Retirement Plan and Other Inflation‑Adjusted Benefits (PDF)
3 pages. Also included are transportation and adoption benefits. (Seyfarth Shaw LLP)
GM Salaried Staff Get Only Consumer-Driven Health Plans
Excerpt: "General Motors Co. will offer only high-deductible consumer-driven health care plans to its 24,000 salaried employees, effective Jan. 1. GM salaried employees will choose from two plans, both linked to health savings accounts. Under one plan, the deductible will be $1,300 for single coverage and $3,100 for family coverage, with a maximum annual out-of-pocket expense of $2,200 for those with single coverage and $5,000 for family coverage. Employees will pay monthly premiums ranging from $5 for those with single coverage and $15 for those with family coverage. In the other CDHP, deductibles also will range from $1,300 to $3,100, but GM will cover all eligible in-network expenses after the deductibles are met. The monthly premiums for that plan will range from $25 for individual coverage to $75 for those with family coverage." (Business Insurance)
[Guidance Overview] New IRS Considerations Regarding Over-the-Counter Items as Medical Care Expenses
Excerpt: "While the IRS guidance adds some certainty, it also reminds us that for many over-the-counter items, reimbursement cannot be automatic. If you decide to cover the expenses of dual-purpose items as part of your FSA or HRA benefit program, you must ask questions necessary to verify that those expenses are reimbursable medical expenses." (Warner Norcross & Judd LLP)
[Guidance Overview] 2010 Benefit Limits
Excerpt: "The Service has also released health and fringe benefit plan adjustments effective January 1, 2010." (Kilpatrick Stockton LLP)
Making Sense of High-Deductible Health Plans
Excerpt: "If you and I are spending more of our own money on health care, then we are likely to ask doctors and hospitals many more questions upfront and be more careful about which tests and procedures we receive. After all, until we exhaust that high annual deductible, it's our money on the line. Employers are pushing these plans because they can save the company as much as 20 percent, compared with traditional insurance." (New York Times; free registration required)
Research Shows Attaching a Debit Card to an HSA Is Key Driver of Enrollment
Excerpt: "Nearly everyone is familiar with swiping a card to pay for groceries, gas and movie tickets. That familiarity, ease and convenience is helping the growth of debit cards for health savings accounts, which patients can use to pay for their pharmaceuticals, copays, medical equipment and hospital expenses. The debit card 'adoption and use continue to grow and grow rapidly,' says Jody Dietel, a compliance officer at WageWorks, a San Mateo, Calif.-based firm that administers flexible spending accounts, health savings accounts, health reimbursement arrangements and health care cards. 'The technology is increasing and improving rapidly. [The debit cards] continue to be a widely adopted and widely appreciated tool for consumers.'" (Employee Benefit News; free registration required)
[Guidance Overview] IRS Final Regs on COBRA, HIPAA and HSA Penalty Reporting, Clarifies HSA Comparability Rules
Excerpt: "Final IRS rules require filing Form 8928 to report and pay excise taxes for violations of HIPAA portability, COBRA, or comparability rules for employer contributions to health savings accounts (HSA) outside of a cafeteria plan or to Archer medical savings accounts. The regulations also clarify certain HSA comparability rules, including the allowance for some higher-paid employees and contributions for midyear plan entrants. The new requirements and clarifications apply to filings due and employer HSA contributions made on or after Jan. 1, 2010." (Mercer LLC)
[Guidance Overview] Genetic Information Nondiscrimination Act Health Insurance Regulations Issued
Excerpt: "Highly anticipated regulations on the Genetic Information Nondiscrimination Act (GINA) will require many employers to modify health risk assessments (HRAs) and other aspects of group health plans and wellness programs. Under the interim final rules, plans and insurers cannot collect genetic information, including family medical history, before or as part of enrollment or use genetic information to adjust premiums or contributions. This restriction means HRAs tied to incentives may need changes." (Mercer LLC)
Health Savings Account Balances Kept Growing in 1st Quarter of 2009
Excerpt: "[T]he average individual HSA account holder for the first quarter of 2009 was 42 years old and contributed $116 monthly, up slightly from an average monthly contribution of $111 for the fourth quarter of 2008. For that same time period, the average monthly employer contribution increased from $69 to $113 for individual HSA account holders. The average family HSA account holder for the first quarter of this year was 45 years old and contributed an average of $239 monthly, up from an average monthly contribution of $206 for the previous quarter." (AISHealth.com)
[Opinion] Reform Plans Leave Health Savings Accounts in Limbo
Excerpt: "While Washington wrangles over health care, the nation's last big reform innovation faces an uncertain future. Health Savings Accounts, the hybrid of flex spending accounts and IRAs that President Bush created in 2003, are an afterthought in the current proposals on Capitol Hill -- with strenuous debate over whether their demise would be a disaster or a welcome end to a program that never lived up to its promise." (CNNMoney.com)
Banks, Insurers Battle for Health Savings Accounts in Health Reform
Excerpt: "If Congress passes a health-care overhaul bill, all health plans would have to meet certain criteria to qualify as adequate coverage. Most people's current coverage would be grandfathered in but, if they switched plans, those plans would need to meet the new standards. Not all HSA-qualified plans, in particular those sold by insurers to individuals and small businesses, would make the grade, according to industry experts. 'It's a concern. We want the accounts to be viable going forward,' says Kevin McKechnie, staff director of the American Bankers Association's HSA Council, which represents banks, insurance companies and their technology providers. More than 2,000 banks, credit unions and brokerage firms offer HSAs." (The Wall Street Journal)
[Guidance Overview] IRS's Final Health Savings Accounts' 'Comparability' Regulations
Excerpt: "The IRS issued final regulations on 'comparable contributions' to health savings accounts that are effective for contributions made on or after January 1, 2010. Adopting the proposed regulations without substantive revision, the final rule allows employer contributions for non-highly compensated employees that are larger than those for highly compensated employees; allows the employer to make the maximum contribution on behalf of mid-year eligible individuals; and prescribes the manner for reporting and paying excise taxes for the failure to make comparable contributions." (Deloitte via BenefitsLink.com)
[Guidance Overview] IRS's Final Regulations on Excise Tax Reporting and HSA Comparability
Excerpt: "EBIA Comment: The deadline for excise tax reporting and payment for failure to comply with the group health plan mandates is the federal income tax return due date without extensions, which may take some filers by surprise, especially employers who routinely obtain filing extensions. For employers and others concerned about potential excise tax liability for failure to comply with the group health plan mandates, we note that these excise taxes do not apply for periods where failures are not discovered exercising reasonable diligence, or to failures due to reasonable cause (and not willful neglect) that are timely corrected. However, the regulations underscore the importance of having (and following) procedures to identify and correct compliance failures." (Employee Benefits Institute of America)
[Guidance Overview] IRS Issues Final Rule on Comparable HSA Contributions
Excerpt: "The Internal Revenue Service (IRS) has issued final rules on comparable employer contributions to employee health savings accounts (HSAs) and filing excise taxes for contributions that exceed statutory guidelines. As in the proposed regulation issued in July 2008 (see IRS Proposes New Rules on Employer HSA Contributions), the final regulations address an exception to comparability rules for employer contributions and provide that employer contributions to the HSAs of non highly-compensated employees may be larger than employer contributions to the HSAs of highly-compensated employees with comparable coverage during a period. However, employer contributions to the HSAs of highly-compensated employees may not exceed employer contributions to the HSAs of non highly-compensated employees with comparable coverage during a period." (PLANSPONSOR.com; free registration required)
[Guidance Overview] DOL Staff Members Provide Informal Views on SPDs/SMMs and Issues Under the Davis-Bacon and Service Contract Acts
Excerpt: "The Joint Committee on Employee Benefits (JCEB) of the American Bar Association has reported on its May 7, 2009 Q&A session with DOL staff members. Highlights include unofficial, nonbinding remarks about these welfare plan topics: (1) SPD requirements when there is a change in federal law, and (2) treatment of FSAs, HRAs, and HSAs under the Davis-Bacon Act and the Service Contract Act." (Employee Benefits Institute of America)
[Official Guidance] Final IRS Regs: Employer Comparable Contributions to Health Savings Accounts Under Section 4980G (PDF)
7 pages. Excerpt: "The sections of these regulations that provide guidance on employer comparable contributions to HSAs under section 4980G apply to employer contributions made on or after January 1, 2010. The sections of these regulations that provide guidance relating to the excise tax under sections 4980B, 4980D, 4980E and 4980G apply to any Form 8928 that is due on or after January 1, 2010." (Internal Revenue Service)
Health Care Reform and Account-Based Health Plans: What Does the Future Hold for Employers? (PDF)
3 pages. Excerpt: "As the health care reform debate continues into the fall of 2009, employers that offer or are considering consumer-driven, account-based health plans (ABHPs) may wonder how those plans will fare after reform is fully implemented." (Towers Perrin)
[Opinion] Health Savings Accounts Could Lead to Real Health Care Reform
Excerpt: "ObamaCare would almost surely kill off consumer-driven plans that reward patients for smart shopping. That's a pity, because there are signs that the plans may actually be starting to cut costs." (Investor's Business Daily)
Heath Savings Account Balances Increase for Individuals and Families, According to Report
Excerpt: "Balances in health savings accounts increased slightly in the first quarter from fourth-quarter 2008 levels, according to data from Canopy Financial Inc. The average balance in an individual health savings account rose 3 percent to $960 during the first quarter, while the average balance in a family HSA grew by 7 percent to $1,720, according to San Francisco-based Canopy Financial, a provider of health care banking technology solutions." (Workforce Management; free registration required)
[Guidance Overview] IRS May Exercise Levy Power over HSAs
Excerpt: "When individuals do not pay all of their taxes, the IRS has several powers to collect the back taxes, plus penalties and interest. Recently, the IRS clarified that its powers extend to Health Savings Accounts (HSAs). Recall that HSAs differ from other benefit spending accounts (e.g., Health FSAs and Health Reimbursement Arrangements [HRAs]) in that the participant actually owns and controls the account, not the employer." (Infinisource)
[Guidance Overview] FTC Delay of Enforcement of Red Flags Rule Until November and FAQs Addressing Employee Benefit Plans
Excerpt: "EBIA Comment: The enforcement delay is welcome news and the FAQs provide some helpful clarification for health FSAs and 401(k) plans. Unfortunately, some issues for employee benefit plans remain unanswered. For example, for those offering health FSA debit cards, it is unclear who is responsible for implementing the Rule -- the plan sponsor, the TPA, or another entity involved in the card program. Further clarification would also be helpful about the Rule's application to other benefits, such as DCAPs, HRAs, and HSAs." (Employee Benefits Institute of America)
Say Goodbye to Reimbursement of Over-the-Counter Medications Through FSAs, HRAs, MSAs
Excerpt: "The House Ways and Means Committee's amendment to the America's Affordable Health Choices Act (H.R. 3200) would prohibit employees from using health FSA dollars to pay for over-the-counter medications. The proposal is estimated to raise $8.2 billion over 10 years. The proposal also would extend to health savings accounts (HSAs), health reimbursement arrangements (HRAs) and Archer Medical Savings Accounts (Archer MSAs)." (Wolters Kluwer)
[Guidance Overview] HSAs Are Subject to IRS Levy, and Levy Amount Generally Is Subject to10% Excise Tax on Nonmedical Distributions
Excerpt: "EBIA Comment: To our knowledge, this [Chief Counsel Advisory (CCA)] is the first IRS guidance addressing IRS levies upon HSAs. In confirming that a tax levy may reach an HSA, the CCA focuses on whether the amount of the levy is subject to the additional 10% excise tax for nonmedical HSA distributions. Although the CCA does not explicitly discuss the issue, we note that the distribution resulting from the levy, like any other HSA distribution for nonmedical purposes, would also be included in the taxpayer's gross income and subject to income tax. CCAs are issued by the Office of Chief Counsel to IRS field or service center employees, and while they cannot be used or cited as precedent, they are helpful in determining the IRS's position." (Employee Benefits Institute of America)
Nonbank Trustees and Custodians: IRS Web Page
Excerpt: "Pursuant to Treas. Reg. ?1.408-2(e), an entity that is not a bank (or, in the case of Archer medical savings accounts and health savings accounts, not a bank or an insurance company) must receive IRS approval to serve as a nonbank trustee or custodian of the following types of tax-exempt trusts or accounts . . . ." (Internal Revenue Service)
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.)
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