Headlines about "Health savings accounts (HSAs)"
Gathered from the web by the editors at BenefitsLink.com.
Consumer-Directed Health Plans Shown to Be Money-Savers
"A large study of the medical spending patterns of consumer-directed health plan enrollees, published in the May Health Affairs, found that CDHP enrollees did indeed spend less on care, saving them and their employers money. But the declines were not restricted to unnecessary and redundant tests. The drop also was due to fewer preventive tests and screenings." (American Medical Association)
[Guidance Overview] Whether or Not Constitutional, ACA Is Creating Turbulent Times for HSAs and HRAs (PDF)
At page 4. "Health savings accounts (HSAs) avoid many of the regulatory requirements under the ACA because they are not generally considered to be health plan coverage. By way of direct regulation, the ACA did increase the penalty for using HSA funds for non-medical purposes to a 20 percent excise tax (plus applicable income taxes) and requires a prescription for OTC drugs. More dramatically, however, is the potential for collateral damage to HSA viability as a result of ACA's regulation of the underlying high deductible health plan (HDHP) coverage, especially in the fully insured market. Some of this concern has been allayed recently when the agencies indicated that a portion of an employer's contribution (but not salary reductions) to an HSA could count toward the actuarial valuation requirements for the underlying HDHP plans." (Employers Council on Flexible Compensation)
[Opinion] Provisions in Health Reform Law and Regs Will Reduce Access to Health Savings Accounts
"[1] ObamaCare's essential health benefits package contains new restrictions on deductibles and cost-sharing, which will prevent at least some current HSA plans from being offered. [2] ObamaCare's medical loss ratio regulations also impose new restrictions that studies show will hit HSA plans particularly hard, and could force individuals to change their current form of coverage. [3] The ObamaCare statute does not specify that cash contributions made to an HSA will be counted towards the new federal actuarial value standards. And a February bulletin released by HHS in advance of upcoming rulemaking indicates that under the Administration�s approach, not all contributions into an HSA will count towards the new minimum federal standards -- meaning some HSA policies will not be considered 'government-approved.'" (National Center for Policy Analysis)
[Guidance Overview] IRS Announcement of 2013 HSA Contribution Limits and HDHP Minimum Deductibles and Out-of-Pocket Maximums
"Although all of the inflation-adjusted amounts will increase for 2013, the increases within each category (i.e., self-only or family) are not identical. This has some practical consequences. For example, some individuals may have to pay more out-of-pocket expenses in 2013 without the benefit of the HSA tax break, because the increase in the HSA contribution limit is not keeping pace with the increase in the out-of-pocket maximum. In addition, the greater difference in 2013 between the minimum required deductibles and the out-of-pocket maximums ($5,000 for self-only coverage and $10,000 for family coverage) will allow plan sponsors a wider range of potential deductibles because, at least before 2014, HDHP deductibles can be set as high as the out-of-pocket maximum for that coverage." (Thomson Reuters/EBIA)
[Guidance Overview] Considerations for Employers Having Both an HSA Program and Health Flexible Spending Accounts
"Special considerations apply if you currently offer health flexible spending accounts ('health FSAs') that allow up to an extra 2-1/2 months after the end of the plan year in which participants can spend their money (known as a 'grace period'). If you are considering offering an HSA in 2013, you may want to take steps now to inform your employees who currently participate in your health FSA (or the health FSA of their spouse, if the employee is eligible to be reimbursed under that FSA), that if the health FSA contains a grace period, they need to have spent all of the money in their health FSA (even if they have not yet submitted the claim or been reimbursed) on or before December 31, 2012 if they want to qualify for an HSA for the entire 2013 taxable year." (McKenna Long & Aldridge LLP)
Tax Benefits of Opening a Health Savings Account
"These accounts, commonly referred to as HSAs, are tax-advantaged medical savings accounts and were created to encourage people to save for future health problems, but there are other reasons to open such an account." (Fox Business)
[Opinion] Saving for Future Health Care Expenses
"Newly announced regulations under the [PPACA] threaten the very existence of consumer directed health plans in the individual market (including the anticipated health insurance exchanges) ... Yet according to a RAND study, these plans have the potential to reduce health care spending by 30% without causing any harm, even to vulnerable populations. [This article reviews] some of the advantages and disadvantages of the various health savings options." (National Center for Policy Analysis)
[Official Guidance] Text of IRS Revenue Procedure 2012-26: The 2013 Inflation Adjusted Amounts for Health Savings Accounts (PDF)
"For calendar year 2013, the annual limitation on deductions under Section 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,250. For calendar year 2013, the annual limitation on deductions under Section 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $6,450." (Internal Revenue Service)
[Official Guidance] 2012 Inflation-Adjusted Amounts for Health Savings Accounts (PDF)
For calendar year 2013, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,250; for an individual with family coverage, it is $6,450. A "high deductible health plan' for calendar year 2013 is a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,250 for self-only coverage or $12,500 for family coverage. (Internal Revenue Service)
[Opinion] Testimony of Center on Budget and Policy Priorities Applauding Cutbacks Under Health Care Reform on FSA, HSAs
"The Affordable Care Act ... includes a number of spending reductions and tax increases designed to assure that expanding health coverage does not drive up the deficit. Some provisions limit the use of tax-advantaged accounts to pay for health-related expenses. These limitations make sense both as tax policy and as health policy, and repealing any of them would be unwise." (Center on Budget and Policy Priorities)
[Opinion] Text of Consumer-Directed Health Coalition's Letter Urging Repeal of Prescription Requirement for HSA-Eligible OTC Drugs (PDF)
"[The Coalition supports] ... H.R. 2529, which would repeal ... the PPACA's restriction that Health Savings Account ... or Flexible Spending Account ... dollars may only purchase over-the-counter ... medical items when a physician prescription is obtained by an individual.... [which] trigger[s] additional but unnecessary health care costs to the consumer." (Consumer Directed Health Coalition)
California Lawmakers Considering Tax-Free HSA Contribution Bill
"California is one of three states that don't currently follow the Internal Revenue Code for HSA tax benefits. Alabama allows pre-tax contributions only if made through a cafeteria plan; New Jersey generally prohibits all pre-tax employee contributions and doesn't allow a deduction. Wisconsin recently amended its tax code to allow tax-free HSA contributions. If enacted, the state tax exclusion or deduction would apply to tax years beginning on or after Jan. 1, 2013." (Mercer)
Enrollment in Health Savings Accounts Increasing Dramatically
"Enrollment in these specialized tax-deductible, tax-free accounts has exploded: In March 2005 there were slightly more than 1 million accounts; a year ago there were 11.4 million, according to America's Health Insurance Plans, a trade group. Since then, the growth has been exponential, with Fidelity Investments saying its HSA business grew 61 percent in a year." (Reuters)
Hearing Advisory: Impact of Limitations on Use of Tax-Advantaged Accounts for the Purchase of Over-the-Counter Medication
"Chairman of the Subcommittee on Oversight of the Committee on Ways and Means, [announced the Subcommittee will hold a hearing April 25, 2012,] on limitations on the purchase of over-the-counter ... medication with tax-advantaged accounts such as health care Flexible Spending Arrangements ..., Health Savings Accounts ... and Health Reimbursement Accounts[.]" (U.S. House of Representatives, Committee on Ways and Means)
Health Care Reform Impacts CDHPs at Many Points
"'Health care reform's impact on CDHPs has so far encouraged more employers to consider account-based plans to lessen consumers' insulation from actual health care costs[.]'" (Society for Human Resource Management)
Employees Become More Comfortable with Health Savings Accounts
"HSAs increased to $12.4 billion in assets among 8.4 million health-savings accounts in 2011, an increase of 70 percent in assets and 55 percent in the number of accounts since 2010, according to the Employee Benefit Research Institute's 2011 EBRI/MGA Consumer Engagement in Health Care Survey." (Human Resource Executive Online)
How to Handle Health Savings Account on Your Tax Forms
"Q: My husband and I file a joint return and itemize deductions. He has a health savings account and I have a flexible spending account (for medical expenses, not child care). How are these reported on the U.S. and N.J. income tax returns?" (NorthJersey.com)
Pros and Cons of Health Savings and Medical Reimbursement Accounts
"HSAs offer a significant annual tax deduction (up to $7,250 in 2012 for an individual over 55 who opts for family coverage), making them particularly appealing to individuals in higher tax brackets. Withdrawals for qualifying health care costs (including ling-term care insurance) are tax free. Investment income in HSAs also is tax free." (Business Journal)
The Dangers of an Underfunded HSA
"High-deductible health plans [make] insured people responsible for the relatively low cost of daily health care occurrences, while protecting them from catastrophic claims. The employee wins through lower premiums and the tax advantages of ... a health savings account, while the health insurance industry is betting consumerism will help to stem the escalation of medical inflation. The luster of a high-deductible health plan quickly diminishes, however, if employees are not able to fund their deductible when a claim is incurred. They'll quickly forget their premium savings and focus instead on a perceived lack of coverage." (BenefitsPro)
Health Saving Account Contribution Guidance Raises Concerns for Employers
"Employers who contribute to employees' health savings accounts or health reimbursement arrangements may not get full credit for that amount when running a key 'actuarial value' test that is part of the health care reform law, federal regulators said in a bulletin." (Business Insurance; free registration required)
Recent DOL Initiatives: Questions Answered
"Last month, advisory board member Sherwin Kaplan and his colleague at Nixon Peabody, Eric Paley, conducted a webinar titled 'Managing and Protecting Your Employee Benefit Plans: New [DOL] Initiatives.' As part of that webinar, [they] took questions from the audience, but they were unable to get to every question in the time allocated[.] Sherwin ... agreed to answer outstanding questions[.] The following are questions submitted during the webinar, with Sherwin's answers.]" (Bloomberg BNA)
CCIIO Proposes HSA Plan Valuation Approach
"The Center for Consumer Information and Insurance Oversight (CCIIO) has issued a bulletin that could affect the ability of personal health account programs to continue to operate after Jan. 1, 2014." (LifeHealthPro)
[Opinion] Analysis: Health Care Myths and Realities -- Seeking the Truth about High-Deductible Plans
"Insurers regularly trot out studies, which they themselves conduct, as part of their ongoing campaign to persuade employers that haven't yet joined in, to get with the program. Earlier this month, for example, my former employer released the results of the 'Sixth Annual Cigna Choice Fund Experience Study.' A press release crowed that, 'When American workers engage in health-smart habits offered in consumer-driven health plans, they reduced their health risks and lowered their total medical costs an average of $9,700 per employee over a five-year period.'" (iWatch News)
Expert Projects 2013 HSA Figures
"Private consultant Roy Ramthun, who led the U.S. Treasury Department's implementation of the HSA program after it was enacted in 2003 and is an expert on consumer-driven health care, projects that the maximum HSA contribution will expand to $3,200 for individuals with self-only coverage and $6,450 for those with family coverage in 2013." (BenefitsPro.com via ProducersWEB.com)
Employer and Worker Contributions to Health Savings Accounts and Health Reimbursement Arrangements, 2006?2011 (PDF)
"This report presents findings from the 2011 EBRI/MGA Consumer Engagement in Health Care Survey, as well as earlier surveys,... It also looks at employer and individual contribution behavior. [A]mong those with an employer contribution, overall contribution levels have fallen.... Individuals with employee-only coverage increased their contribution levels, but those with family coverage did not." (Employee Benefit Research Institute)
Employer and Worker Contributions to Health Savings Accounts and Health Reimbursement Arrangements, 2006?2011 (PDF)
"This report presents findings from the 2011 EBRI/MGA Consumer Engagement in Health Care Survey, as well as earlier surveys, examining the availability of health reimbursement arrangement (HRA) and health savings account (HSA)-eligible plans (consumer-driven health plans, or CDHPs). It also looks at employer and individual contribution behavior." (EBRI.org)
With a Growth in Consumer-Directed Plans, HSAs Rocket in Usage
"Among 600,000 [Bank of America] accounts, HSAs are the fastest growing, approaching 200,000 user accounts and more than $300 million in account balances." (Employee Benefit News)
[Guidance Overview] IRS Updates Model HSA Trust and Custodial Account Forms
"These bare-bones model agreements serve as a good starting point for HSA trustees and custodians. Nonusers may also find them helpful to identify the minimum requirements for a qualifying HSA trust or custodial agreement." (Thomson Reuters/EBIA)
[Guidance Overview] IRS Updates Form 8928 for Self-Reporting of Excises Taxes Owed for PPACA Failures
"PPACA created several new reporting and compliance standards for plans and employers. The [chart in this document] lists some of those new requirements and their effective dates. Failure to meet any of these must be reported on Form 8928 starting in 2012 as of the due date of the employer's federal income tax return. In general, the penalty assessed under Code ? 4980D is $100 per day, per affected participant for as long as the plan is non-compliant." (Faegre Baker Daniels)
[Guidance Overview] IRS Addresses Effect of Indian Health Services Eligibility on HSA Eligibility
"This Notice finally answers an HSA eligibility question that was especially troubling because, as with certain veterans benefits, the right to obtain medical services from an IHS facility is determined by status (e.g., membership in a federally recognized Indian tribe), and not by choice. The IRS approach resembles the one used to determine HSA eligibility for those eligible for VA medical benefits -- a solution that some of us anticipated as the best fit." (Thomson Reuters/EBIA)
[Guidance Overview] Indian Health Service Eligibility Not HSA Deal Breaker
"The IRS [said] that generally individuals are not eligible to establish an HSA if they do receive IHS services during the three months before the date on which they seek to establish the HSA. But that is not a blanket prohibition -- the IRS said that individuals who receive service through the HIS that is permitted under Notice 2004-2 still can establish an HSA." (Thompson Publishing Group)
[Opinion] Georgia's Tax Breaks to Increase Use of Health Savings Accounts Did Not Expand Health Coverage
"New data show that an approach to covering the uninsured that Newt Gingrich's Center for Health Transformation (CHT) largely designed and heavily promoted to Georgia policymakers -- and that Georgia adopted in 2008 -- has failed to produce the promised results." (Center on Budget and Policy Priorities)
[Opinion] Over-the-Counter (OTC) Medicine Saves Healthcare System Billions
"[T]he study findings underscore the importance of reversing a provision in the 2010 Affordable Care Act (ACA) that prohibits consumers from using their flexible spending arrangements (FSAs) to purchase OTC medicines without first getting a prescription. At the time this provision was enacted, an estimated 19 million working American families purchased OTC medicines, relying on these accessible and affordable medicines to keep their families healthy." (Consumer Healthcare Products Association)
[Official Guidance] IRS Notice 2012-14: 'Eligible Individual' HSA Status for Persons Eligible for Services at an Indian Health Service Facility (PDF)
"An individual who is eligible to receive medical services at an IHS facility, but who has not actually received such services during the previous three months, is an eligible individual within the meaning of ? 223(c)(1) who may establish and make tax-free contributions to an HSA. However, an individual generally is not an eligible individual if the individual has received medical services at an IHS facility at any time during the previous three months." (U.S. Internal Revenue Service)
Patients in Consumer-Driven Health Plans Show More Cost-Conscious Behavior (PDF)
"[T]hose in [consumer-driven health plans] were more likely to say they had checked whether their plan would cover care; asked for a generic drug instead of a brand name drug; talked to their doctor about treatment options and costs; talked to their doctor about prescription drug options and costs; developed a budget to manage health care expenses; checked a price of service before getting care; and used an online cost-tracking tool." (Employee Benefit Research Institute)
Assets in Health Savings Accounts Grow Substantially During 2011
"HSAs continue to see consistent growth as the total number of HSA accounts rose to almost 6.8 million with assets totaling $12.4 billion, a year over year increase of almost 20% for accounts and a nearly 26% increase in assets for the period from December 31st, 2010 to December 31st, 2011." (Devenir)
[Opinion] Comments of Galen Institute on Medical Loss Ratio Requirements
"The MLR rules as drafted discriminate against Health Savings Accounts (HSAs) and similar high-deductible health plans in a number of ways. These accounts provide employers, employees, and individuals with an option to purchase coverage with a larger deductible so that the polices function more like traditional 'insurance' -- covering medical expenses above a certain threshold. . . . The Galen Institute respectfully requests that HHS exempt HSAs and other high-deductible health plans from the MLR requirement . . . ." (Galen Institute)
[Official Guidance] Bill Text for H.R. 3819: Health Freedom for Seniors Act
"To amend the Internal Revenue Code of 1986 to allow the transfer of required minimum distributions from a retirement plan to a health savings account." (The Library of Congress)
IRS 2011 Version of Publication 969 on HSAs, HRAs, Health FSAs, and MSAs
"Publication 969 provides a convenient overview of the basic features of various consumer-driven health care vehicles without getting into too much detail." (Thomson Reuters/EBIA)
IRS Issues 2011 Versions of Publications on Medical and Dental Expenses and on Child and Dependent Care Expenses
"Pub. 502 provides valuable guidance on what qualifies as a medical expense under Code ? 213(d), and thus, helps identify the expenses that may be reimbursed or paid by health FSAs, HSAs, or HRAs." (Thomson Reuters/EBIA)
Health Savings Accounts and Health Reimbursement Arrangements: Assets, Account Balances, and Rollovers, 2006?2011 (PDF)
"Account-based health plans continued to grow in 2011, increasing to $12.4 billion in assets among 8.4 million accounts . . . ." (Employee Benefit Research Institute)
[Guidance Overview] Updates on Health and Welfare Benefit Developments, Dec. 12, 2011
Includes discussion entitled 'Amendment to 'Pay-or-Play' Law May Require Immediate Attention by Employers with San Francisco Employees.' Excerpt: 'The HCSO amendment will likely require most employers who satisfy the HCSO's pay-or-play mandate by using health reimbursement arrangements ('HRAs') or employer contributions to health flexible spending arrangements ('health FSAs') to amend or restructure those HRAs or health FSAs before the end of the year." (Miller Chevalier)
[Guidance Overview] 2012 HSA Changes: What You Need to Communicate
"Under the last-month rule, an eligible individual on the first day of the last month of the member's tax year (Dec. 1, for most taxpayers), is considered an eligible individual for the entire year. . . . This means that someone who becomes eligible on Dec. 1, 2011, and has family HDHP coverage on that date [generally] can immediately contribute $6,150 to their HSA, and then add another $6,250 on Jan. 1, 2012." (BenefitsPro)
[Guidance Overview] 2012 HSA Changes: What You Need to Communicate
"For calendar year 2012, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan will be $3,100. The annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,250. The catch-up contribution for those 55 or older will remain at $1,000." (BenefitsPro)
[Guidance Overview] Employers Must Comply with Changes to San Francisco Health Care Mandate Beginning January 1, 2012
"While these changes again raise federal [ERISA] preemption concerns, barring a challenge (which seems unlikely), the Ordinance's new requirements will go into effect. Employers, particularly those using a health reimbursement account plan (HRA) or a health savings account (HSA) plan, should consider compliance preparations with the assistance of legal counsel." (Jackson Lewis LLP)
Health Savings Accounts and Account-Based Health Plans
"This report outlines research findings and statistics about HSAs in the following areas: enrollment, age and income distribution, health status, premiums, preventive care, and account information." (AHIP Coverage)
Implementing an HSA with HDHP: How Hard Could it Be?
"This post explores some of the general eligibility questions we are asked most frequently. It is the first in a series on HDHP/HSA arrangements, and we hope that together these posts will provide a useful overview on implementing an HDHP/HSA arrangement." (Verrill Dana, LLP)
The Most Tax-Savvy Use of a Health Savings Account
"You can choose to use the money in your HSA to cover [recent bills], or you can pay the [bills] out-of-pocket and let the HSA money accumulate. To the extent you don't use the money in the HSA to pay for medical expenses while you're working, or you use your healthcare dollars wisely so you have money left over at the end of the year, you have it saved up for retirement." (Forbes.com LLC)
2011 Form 8889 and Instructions for HSA Reporting
"Form 8889 is used by HSA holders as an attachment to Form 1040, but we think employers and advisors working with HSAs should have a basic understanding of its scope. We note that the 2011 instructions do not highlight one likely source of confusion arising from something health care reform did not change about the HSA rules." (Thomson Reuters/EBIA)
Companies Go to High-Deductible Health Plans
"In plans where deductibles are covered by a health savings or health reimbursement account, workers have to pay an average deductible of $1,908, a 2011 Kaiser survey showed. Traditional health plans, on average, have deductibles well under $1,000." (USATODAY.com)
2011 Survey of Employers Utilizing HSA Programs
(Free product.) 'The survey [conducted by Buck Consultants on behalf of ACS/The HSA Solution] [involves] demographics, behaviors, and opinions of individuals that own accounts." (BuckSurveys.com; registration required)
2011 Survey of Health Savings Account Holders
"The survey [conducted by Buck Consultants on behalf of ACS/The HSA Solution] was divided into several categories that allowed for the analysis of account holder demographics, participation with their health plan, selection and use of the HSA, behavior related to medical service usage, and satisfaction with product features." (BuckSurveys.com)
California Lawmakers Considering Tax-Free HSA Contribution Bill
"California is one of three states that don't currently follow the Internal Revenue Code for HSA tax benefits. Alabama allows pre-tax contributions only if made through a cafeteria plan; New Jersey generally prohibits all pre-tax employee contributions and doesn't allow a deduction. Wisconsin recently amended its tax code to allow tax-free HSA contributions. If enacted, the state tax exclusion or deduction would apply to tax years beginning on or after Jan. 1, 2013." (Mercer)
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