Headlines about "Health savings accounts (HSAs)"
Gathered from the web by the editors at BenefitsLink.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)
[Official Guidance] Text of IRS 2008-2009 Priority Guidance Plan, Including Reg Projects for Retirement Benefits, Executive Comp, Healthcare and Other Benefits (PDF)
31 pages; dated September 10, 2008. (Internal Revenue Service)
U.S. Treasury Department and U.S. Small Business Administration Partner to Help Small Businesses
Excerpt from press release: 'The new website, www.hsa.gov, presents the advantages of HSAs, provides comparisons to other health coverage options, and has other materials to help employers and individuals determine whether and how to enroll in HSA-eligible coverage and how to save for health care costs through an HSA." (U.S. Treasury Department)
Think-Tank Proposals Seek Tax-Code Reform to Broaden Consumer Ownership of HSAs
Excerpt: "In an Aug. 1 posting at his health policy blog (www.john-goodman-blog.com), John C. Goodman, founder and president of nonprofit D.C.-based research group National Center for Policy Analysis, sketched out a proposal for a 'universal health savings account.'" (AISHealth.com)
[Guidance Overview] Does HSA Custodian/Trustee Have to Verify Whether HSA Distributions Are Used for Qualified Medical Expenses?
Excerpt: "No. IRS Notice 2004-2, Q&A-29 states that HSA custodians/trustees are not required to determine whether HSA distributions are used for qualified medical expenses. Individuals who establish HSAs make that determination and should maintain records of their medical expenses sufficient to show that the distributions have been made exclusively for qualified medical expenses and are therefore excludable from gross income." (Wolters Kluwer)
[Guidance Overview] IRS Releases HSA Comparability Guidance
Excerpt: "The IRS has proposed regulations on the health savings account (HSA) comparability requirements under the Tax Relief and Health Care Act of 2006. The regulations also explain the penalties for making contributions that are not comparable, which include a 35 percent excise tax." (Watson Wyatt Worldwide)
California Companies and Brokers Tussle Over HRAs in Consumer Plans
Excerpt: "A dispute between health insurance companies in California and brokers could end a practice favored by small employers to save money on health coverage. The feud centers on employers' funding of health reimbursement arrangements with high-deductible health plans. Normally, high-deductible plans are used with health savings accounts, which are owned by employees and often partially funded by the employer to help defray an employee's health care costs." (Workforce Management; free registration required)
[Guidance Overview] When There Is More Than One Authorized Signer on a Health Savings Account
Excerpt: "If a Health Savings Account (HSA) owner allows his/her spouse to be an authorized signer on the account, does that make the HSA a joint HSA? No, there is no such thing as a joint HSA." (Wolters Kluwer)
Tax Break on IRA-to-HSA Rollover May Have Little Impact on Enrollment
Excerpt: "In an effort to spur funding of health savings accounts, the Internal Revenue Service recently issued guidance on boosting HSA balances with money from individual retirement accounts. Individuals covered by a high-deducible health plan that also own a traditional or Roth IRA can make a one-time IRA-to-HSA funding transfer without facing federal income taxes or penalties. The transfer amount, however, cannot exceed the individual's maximum HSA contribution limit." (Employee Benefit News; free registration required)
[Guidance Overview] Summary of IRS Notice 2008-59 Providing Updated Guidance Regarding Health Savings Accounts
Excerpt: "Notice 2008-59 provides answers to 42 questions clarifying and illustrating rules regarding Health Savings Accounts (HSAs) as they relate to eligible individuals, high deductible health plans (HDHPs), contributions, distributions, prohibited transactions, establishing an HSA and HSA administration. Notice 2008-59 responds to questions which have arisen regarding HSAs since the IRS last provided guidance in 2004 with Notice 2004-2 and Notice 2004-50." (Pepper Hamilton LLP)
Highlights of Health Savings Accounts
Excerpt: "HSA money is mostly subject to the same investment rules as IRA money. 'Most quality administrators offer an investment option to clients when their accounts meet a certain threshold,' . . . . 'Investment options include mutual funds, asset allocation models and brokerage accounts. Current law prohibits certain types of investments, including rare coins, art and real estate.'" (Financial Planning)
[Guidance Overview] IRS's Question-and-Answer Guidance on HSAs
Excerpt: "In Notice 2008-59, the IRS provides much-anticipated guidance on health savings accounts (HSAs). The guidance clarifies which onsite health clinic services cancel out HSA eligibility and when employers can recoup HSA contributions, as well as addressing other eligibility issues, high-deductible health plans (HDHPs), contributions, distributions and prohibited transactions. While some of the information restates earlier guidance, the notice fills in some gaps and provides new guidance as well." (Watson Wyatt Worldwide)
Answering Your Questions about Health Savings Accounts, Updated for 2008 and 2009 (PDF)
The questions and answers show how HSAs work and what they can mean for you. (Councial for Affordable Health Insurance)
[Guidance Overview] Employee Benefits Developments, August 2008 Issue
Includes ESOP Dividends -- New Tax Reporting Rules; Mere Posting of SPD on Intranet Does Not Ensure Actual Receipt; Trilogy of IRS Guidance Regarding Health Savings Accounts; Service by Director as Interim CEO Results in Loss of Tax Deduction for Corporation; IRS Proposes Regulations Regarding 'Greater of' DB Plan Formulas; and No FICA Tax Refund On Nonqualified Deferred Comp Plan Benefits Never Received; Kentucky Retirement System Does Not Violate the ADEA. (Hodgson Russ)
HSA Contributions - Recouping Employer Contributions
Excerpt: "If an employer contributes to the HSA of an employee who ceases to be an eligible individual during a year, can the employer recoup amounts that the employer contributed after the employee ceased to be an eligible individual?" (Wolters Kluwer)
HSA Savings Insufficient to Fund Retiree Health
Excerpt: "According to the [Employee Benefit Research Institute] analysis, one of the difficulties in using an HSA to save money for premiums and out-of-pocket expenses during retirement is that individuals also can (and might need to) use the money in the account to pay for health care services during their working years or to pay COBRA premiums and insurance premiums during periods of unemployment." (Wolters Kluwer)
[Official Guidance] Text of IRS Rev. Proc. 2008-48: Treatment of Dependent by Noncustodial Parent When Custodial Parent Has Not Released Claim (PDF)
5 pages. Excerpt: "The Service will treat a child described in the scope section of this revenue procedure of taxpayers within the scope of this revenue procedure as the dependent of both parents under §§ 105(b), 106(a), 132(h)(2)(B), 213(d)(5), 220(d)(2), and 223(d)(2), whether or not the custodial parent releases the claim to the exemption under § 152(e)(2). . . . This revenue procedure is effective August 18, 2008. However, taxpayers may apply this revenue procedure in any taxable year beginning after December 31, 2004, for which the period of limitation on credit or refund under § 6511 has not expired as of August 18, 2008." (Internal Revenue Service)
[Guidance Overview] IRS Guidance on Transfers from IRAs to HSAs
Excerpt: "Employees may now make a one-time, tax-free transfer from their individual retirement account (IRA) to their health savings account (HSA). . . . There is an exception to the one-time limit: Individuals who change from self-only, high-deductible health plan (HDHP) coverage to family HDHP coverage may make a second transfer within the same year." (Watson Wyatt Worldwide)
[Guidance Overview] Proposed HSA Regulations Under Internal Revenue Code Sections 4980B, 4980D, 4980E and 4980G
Excerpt: "On July 16, 2008, the IRS released proposed regulations under Code sections 4980B, 4980D, 4980E and 4980G pertaining to health savings accounts (HSAs). The proposed regulations provide guidance in the areas of tax reporting and paying, HSA contributions, and qualified HSA distributions. In this article, we review the proposed regulations with respect to Code sections 4980B, 4980D, 4980E and 4980G." (JPMorgan Chase & Co.)
[Guidance Overview] IRS Issues New Guidance on HSAs (Part III of Guidance Overview)
Excerpt: "The IRS recently issued Notice 2008-59 and proposed regulations to address a variety of open questions about health savings accounts, or 'HSAs.' This is the third in a series of articles on aspects of the guidance which are of particular interest to employers. The focus of this article is on permitting HSA account owners to access their funds with debit cards that permit payments only for health care." (Employee Benefits Institute of America (EBIA))
[Guidance Overview] IRS Provides Guidance on HSA Contribution Limits and One-Time Transfers from IRA to HSA
Excerpt: "The IRS recently issued guidance on changes in the Internal Revenue Code that affect contributions to Health Savings Accounts." (Winston & Strawn LLP)
Saving for Health Care Expenses in Retirement: The Use of Health Savings Accounts (PDF)
Pages 9-13 of 16 pages. Excerpt: "This analysis revisits the savings needed to cover health insurance premiums and out-of-pocket expenses for health care services in retirement and evaluates the use of health savings accounts (HSAs) to save for those expenses. Proponents of HSAs often tout them as a vehicle for funding future retiree health care costs. But, while HSAs represent an important option for consumers seeking more control over their health care spending, statutory contribution limits make it unlikely that these accounts will play more than a minor part in savings for health care costs in retirement." (Employee Benefit Research Institute)
[Guidance Overview] Another Question is Answered in the Consumer-Driven Healthcare Reimbursement Accounts (HSAs, HRAs, Archer MSAs, Medicare MSAs) Q&A Column
Under what circumstances can an employer recoup its HSA contributions from the HSA custodian/trustee? (BenefitsLink.com)
[Guidance Overview] Guidance on 2006 HSA Changes, General HSA Issues and Excise Tax Returns (PDF)
7 pages. Excerpt: "The proposed regulations on comparability are of interest mainly to those who do not provide employees the opportunity to make HSA contributions through a cafeteria plan, but they also provide information on filing excise tax returns." (Buck Consultants)
[Opinion] Written Statement on Impact of High Deductible Health Insurance and Health Savings Accounts on Consumers (PDF)
4 pages. Statement Before the Health Subcommittee Committee on Ways and Means, United States House of Representatives. Excerpt: "The potential for health savings accounts and encouragement of high deductible insurance to split the healthy from the sick and the rich from the poor is alarming. But of even greater concern is the distraction they pose to turning the full attention of policy makers and the health policy community toward the challenge of providing true health care security to all." (Consumers Union)
[Guidance Overview] Proposed Regs Permit Higher Employer Contributions to HSAs of Nonhighly Compensated Employees
Excerpt: " Generally, if the employer fails to make comparable contributions to the HSAs of its employees during a calendar year, an excise tax equal to 35% of the aggregate amount contributed by the employer to the HSAs of its employees during that calendar year is imposed on the employer." (Wolters Kluwer)
[Guidance Overview] IRS Proposes Regulations on HSA Comparability and Excise Tax Reporting
Excerpt: "Although the comparability provisions of the proposed regulations reflect prior IRS guidance and come as no surprise, employers that make HSA contributions outside of a cafeteria plan will want to familiarize themselves with these provisions. (The HSA comparability rules do not apply to employer HSA contributions made through a cafeteria plan.) And although the various excise taxes have been in effect for years, the proposed regulations are the first IRS guidance on reporting and paying those taxes." (Employee Benefits Institute of America)
[Guidance Overview] IRS Issues New Guidance on HSAs - Part I
Excerpt: "The IRS recently issued Notice 2008-59 and proposed regulations to address a variety of open questions about health savings accounts, or 'HSAs.' Depending on the outcome of the November election this could be the last comprehensive HSA-related guidance for some time. No doubt mindful of that possibility, it appears IRS is trying to tie up as many loose ends as possible during the Bush Administration's final year." (Deloitte via BenefitsLink.com)
[Guidance Overview] Recouping HSA Contributions Made for a Noneligible Employee
Excerpt: "If an employee was never an eligible individual, his/her employer may correct the error. At the employer's option, the employer may request that the financial organization return the amounts to the employer." (Wolters Kluwer)
[Guidance Overview] HSA Excise Tax Rules Proposed
Excerpt: "The regulations would apply to employer contributions made on or after the first day of the first calendar year after final regulations are published. However, the proposed rules note that taxpayers may rely on the proposed rules for employer contributions made on or after Jan. 1, 2007, and before the effective date of final regulations." (Wolters Kluwer)
[Guidance Overview] IRS's Miscellaneous Guidance on Health Savings Accounts
Excerpt: "Recent IRS Notice provides answers to a variety of technical HSA issues." (McDermott Will & Emery)
[Guidance Overview] HSA Excise Tax Rules Proposed
Excerpt: "The Internal Revenue Service has issued proposed regulations for employer comparable contributions to health savings accounts (HSAs) under the excise tax rules of IRC Sec. 4980. These proposed rules would implement provisions of the Tax Relief and Health Care Act of 2006 (P.L. 109-432). The proposed rules appeared in the July 16 Federal Register." (Wolters Kluwer)
States That Allow Individuals to Deduct Health Savings Accounts Contributions, 2008
Excerpt: "New 2008 information from Thomson West's Health Policy Tracking Service (HPTS) on states that allow individuals to deduct health savings accounts contributions on their state income tax returns. Also available from HPTS is new information on state authorization of tax credits or deductions for small employers offering health insurance." (Kaiser Family Foundation)
[Guidance Overview] More Guidance from IRS on Health Savings Accounts
Excerpt: "On June 25, 2008, the Internal Revenue Service (IRS) issued Notice 2008-59, guidance that includes 42 questions and answers on various topics concerning Health Savings Accounts (HSAs). This long-awaited 'grab bag' of guidance includes information on several topics including eligibility, employer contributions and prohibited transactions. This is the third set of question and answer guidance IRS has issued since HSAs were created in 2003." (The Segal Group, Inc.)
IRS's Proposed Regs on HSA Comparability Requirements and HSA and Group Health Plan Excise Tax Reporting
Excerpt: "The rules that provide guidance on employer comparable contributions are proposed to apply to contributions made on or after the first day of the first calendar year after final regulations are published. (However, taxpayers may rely on the guidance for employer contributions made on or after January 1, 2007.) The rules that provide guidance relating to excise taxes are proposed to be effective for calendar years (or plan years, where applicable) beginning after the date the final regulations are published." (Employee Benefits Institute of America)
[Official Guidance] Prop. IRS Regs: Employer Comparable Contributions to Health Savings Accounts and Requirement of Return for Filing of the Excise Tax (PDF)
7 pages. Excerpt: "New paragraph (d) of section 4980G provides an exception to the comparability rules that allows, but does not require, employers to make larger contributions to the HSAs of nonhighly compensated employees than the employer makes to the HSAs of highly compensated employees. These proposed regulations interpret that requirement. . . . With respect to the excise tax under section 4980B or 4980D for employers and third parties such as insurers or third party administrators, the return is due on or before the due date for filing the person's federal income tax return. An extension to file the person's income tax return does not extend the date for filing Form 8928." (Internal Revenue Service)
[Guidance Overview] IRS's Question-and-Answer Guidance on HSAs
Excerpt: "The guidance clarifies which onsite health clinic services cancel out HSA eligibility and when employers can recoup HSA contributions, as well as addressing other eligibility issues, high-deductible health plans (HDHPs), contributions, distributions and prohibited transactions. While some of the information restates earlier guidance, the notice fills in some gaps and provides new guidance as well." (Watson Wyatt Worldwide)
[Guidance Overview] Further HSA Guidance Released
Excerpt: "As health care costs continue to escalate, more and more employers are turning to health improvement programs in The IRS recently released Notice 2008-5. The notice provides guidance on health savings accounts in a number of areas, including contribution limits, eligibility, and administration and maintenance fees. The notice is provided in a question and answer format covering 42 items. The . . . article reviews those aspects of HSAs that are not covered in other guidance." (JPMorgan Chase & Co.)
[Guidance Overview] Recent IRS Guidance on Health Savings Accounts (PDF)
Excerpt: "The Internal Revenue Service recently issued three notices providing guidance on Health Savings Accounts. The guidance addresses rollovers to HSAs from IRAs and Roth IRAs, HSA contribution limits, and various technical questions about many aspects of HSAs. The three notices are summarized in the [target] article." (Groom Law Group)
[Guidance Overview] IRS Issues New Q's and A's on Health Savings Accounts (PDF)
2 pages. (Milliman)
[Guidance Overview] Question on Maximum Annual HSA Contribution Limits
Excerpt: "How do the maximum annual HSA contribution limits apply to an individual with family high-deductible health plan (HDHP) coverage if the family HDHP covers spouses or dependent children who also have coverage under a non-HDHP, Medicare, or Medicaid?" (Wolters Kluwer)
Creative Pairing of HSAs with Other Benefits Can Result in Synergies That Deliver Better Benefits and Coverages
Excerpt: "In the early days of HSAs, employers were trying to get their bearings in order to understand – and then utilize – this new savings vehicle. Now, a solid group of HSA devotees has begun pairing other products and programs with HSAs so employees can better maximize the advantages inherent in these plans. These pairings must take into account that HSA-eligible individuals must be covered by a high deductible health plan that meets IRS criteria and can have no other coverage that pays benefits before the IRS-established minimum deductible has been met." (Warner Norcross & Judd LLP)
Account-Based Health Plans: What Works, What Doesn't -- And Why
Excerpt: "Is your company thinking of setting up an account-based plan? If so, . . . here are some steps you should avoid: Launching the plan in a negative environment -- where employees have reacted negatively to change or aren't prepared well in advance; Neglecting to involve leadership in planning and communication; Focusing exclusively on benefit design to achieve cost savings and other objectives; Positioning the program as 'just another option' among other plan offerings without communicating the fundamental differences; Selecting vendors who are poorly prepared; Walking away after implementation e.g., delivering communication and support only during enrollment)." (Towers Perrin)
[Guidance Overview] HSA Guidance Under IRS Notice 2008-59 (PDF)
7 pages. Excerpt: "The last Question in Notice 2008-59 confirms that HSA administration and maintenance fees withdrawn by the trustee from an HSA are not considered distributions, but are reported on IRS Form 5498-A. (Q/A – 42)." (Benoit Diaz LLC)
New Health Savings Accounts Proposed
Excerpt: "A bill was introduced last month that would create two separate savings accounts intended to help people pay for health care costs in retirement." (Investment News; free registration required)
[Guidance Overview] IRS Clarifies Questions About HSAs - Guidance Seen Speeding Adoption by Employers
Excerpt: "Experts concur that the biggest issue addressed by IRS Notice 2008-59, which was released last week, involves on-site clinics. Such clinics have proliferated in recent years for a variety of reasons, including corporate belief that care can be delivered at a lower cost in a clinic compared with physician offices and other medical settings while reducing how long employees receiving care must be away from their jobs." (Financial Week; free registration required)
[Guidance Overview] IRS Issues 'Grab Bag' Guidance Addressing Many HSA Issues
Excerpt: "The HSA grab bag confirms earlier guidance and offers new guidance on topics previously unaddressed. All 42 of its Q/As deserve close, careful reading." (Employee Benefits Institute of America)
[Guidance Overview] New Guidance Addresses HSA Eligibility
Excerpt: "The IRS issued additional guidance relating to health savings accounts (HSAs) on June 25. Notice 2008-59 consists of 42 questions and answers on a variety of topics, including eligibility, high-deductible health plans (HDHPs), contributions, distributions, prohibited transactions, establishing an HSA and administration." (Thompson Publishing Group Inc.)
[Guidance Overview] Employee Benefits Developments, June 2008 (PDF)
3 pages. This edition of the newsletter focuses on HSAs. (Hodgson Russ LLP)
[Guidance Overview] Treasury Releases Q&A on HSAs
Excerpt: "The Treasury Department and Internal Revenue Service released on Wednesday additional guidance on health savings accounts (HSAs). Notice 2008-59 contains 42 new frequently asked questions and answers to those questions as well as examples." (PLANSPONSOR.com; free registration required)
[Official Guidance] Text of IRS Notice 2008-59: Questions and Answers About Health Savings Accounts (HSAs) (PDF)
28 pages. (Internal Revenue Service)
[Guidance Overview] HSA Contribution Continuation Under Family-Coverage High-Deductible Health Plan
Excerpt: "The husband's HSA is no longer eligible to receive regular HSA contributions due to his enrollment in Medicare. His wife is covered under an HDHP, presumably is not covered under a non-HDHP, and is not enrolled in Medicare. She therefore remains eligible for contributions to an HSA in her name." (Wolters Kluwer)
[Guidance Overview] New IRS Guidance on Transfers from IRAs to HSAs
Excerpt: "The guidance is effective retroactively for taxable years beginning after December 31, 2006." (Faegre & Benson LLP)
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