Health Insurance Quote - Health Savings Accounts

Status of HSA's, FSA's, HRA's and MSA's in Health Care Reform

nospam@example.com (Todd Page) — Thu, 07 Jan 2010 08:05:00 -0600

First and foremost, neither the House nor Senate health reform bills repeal HSAs. Earlier proposals that would have eliminated some of these options (particularly FSAs and HRAs) did not survive the legislative process. Below is a description of the remaining provisions that could be included in the final health reform legislation.

Changes Impacting All Health Care Accounts (FSAs, HRAs, HSAs, and Archer MSAs)

Both the House and Senate bills include a change in the definition of a “qualified medical expense” that impacts reimbursements and withdrawals under all types of health care accounts (i.e., FSAs, HRAs, HSAs, and Archer MSAs). As of 2011, expenses incurred for over-the-counter (OTC) medications and products will no longer be eligible for payment or reimbursement from any of the health care accounts. The House bill definition appears to apply to all OTC medications. However, the Senate bill would still allow OTC medicines obtained with a prescription and insulin to be reimbursed or paid tax-free from the health care accounts.

The Senate bill would impose an excise tax of 40 percent on employer-sponsored coverage that has a benefit value in excess of $8,500 for single coverage and $23,000 for family coverage (indexed annually). The benefit value of employer-sponsored coverage would include the value of the group health plan and contributions to employees’ FSAs, HRAs, and HSAs. This tax would be imposed on insurance companies, including self-insured plans and plans sold in the group market, and plan administrators. The House bill does not include a similar provision

The Senate bill would also expand the definition of a “beneficiary” to include domestic partners and same-sex spouses. This would make these individuals eligible for tax-free reimbursement of qualified medical expenses under FSAs, HRAs, and HSAs. The provision would be effective beginning in 2010.

Changes Impacting Only Flexible Spending Arrangements (FSAs)

The most significant change likely to be enacted is an annual limit on contributions made by employees to flexible spending arrangements (FSAs) for health care. Both the House and Senate versions of health reform legislation would limit contributions to no more than $2,500 annually. The limit would be indexed to inflation for future years. Under the House bill, these changes would not take effect until 2013. In the Senate bill, these changes would take effect in 2011.

Changes Impacting Only Health Savings Accounts (HSAs)

The changes to health savings accounts (HSAs) proposed by the House and Senate bills are relatively minor. The only provision directly impacting HSAs (in addition to the change in the definition of a qualified medical expense described above) is that both the House and Senate bills would increase the tax penalty on HSA withdrawals that are not used for qualified medical expenses from the current 10 percent to 20 percent. The Senate bill also increases the penalty for non-qualified withdrawals from Archer MSAs. These provisions would go into effect in 2011.

However, the changes proposed to all health insurance policies could have potentially adverse affects on high deductible health plans (HDHPs) that currently make people eligible to contribute to HSAs. Some of the impact may not be known until regulations implementing the final provisions are written.

Both the House and Senate bills set new requirements for all insurance policies, including HDHPs. For example, all insurance policies will be required to provide first dollar coverage for preventive care services. In addition, the preventive services must be covered without any cost-sharing (e.g., copayments) or application of any deductibles. While HDHPs are currently allowed to provide first dollar coverage of preventive care services, and most do, in the future all HDHPs will be required to do so. These provisions would go into effect in 2013 in the House bill and 2014 in the Senate bill.

However, the U.S. Preventive Services Task Force (and the Secretary of HHS) will prescribe the scope of preventive care services in the future. This could create a potential challenge for HDHPs to the extent that the preventive services prescribed conflict with IRS guidance on what constitutes “preventive care” for HSA purposes. The IRS may need to revise its guidance on preventive care depending on the outcome of this provision.

Another new requirement for all insurance policies is that they provide a minimum actuarial value for the benefits covered. Under the House bill, the minimum actuarial value must be at least 70 percent. Under the Senate bill, the minimum actuarial value must be at least 60 percent. Given the higher deductibles that most HDHPs have (compared to traditional HMO and PPO plans), the lower minimum actuarial value requirement in the Senate bill would make it easier for more HDHPs to meet the standard.

However, it is important to look more closely at how “actuarial value” is defined in these bills. Both bills use a different definition than the American Academy of Actuaries in that the bills would measure a plan’s actuarial value by comparing the percentage of covered benefits paid by the insurance plan relative to an identical plan with zero cost-sharing (i.e., no deductibles, copays, or coinsurance). Conversations with House and Senate staff also suggest that a plan’s actuarial value would be determined assuming that an average or “standard” population would enroll in the plan, not taking into account any self-selection that may occur to do plan design features like deductibles, etc.

It is also not clear whether a plan’s actuarial value would include employer or individual contributions made to the individual’s HSA. The House bill is completely silent on this matter which would leave it up to the Secretary of HHS to define in regulations. The Senate bill requires the Secretary of HHS to issue regulations on this matter. Including the contributions in the calculation of a plans actuarial value would make it easier for more HDHPs to meet the minimum actuarial value requirement. If contributions are not included, HDHPs, many of which have actuarial values below 60 percent (or whatever the final standard becomes) based on the insurance coverage alone, could no longer be sold. Including contributions in the actuarial value calculation can increase a plan’s value by 10-20 percentage points (or more), depending on the size of contributions.

Another potential conflict could arise for HDHPs if the current House bill’s limits on out-of-pocket expenses for all health insurance plans are included in the final health reform legislation. The House bill sets limits on annual out-of-pocket expenses at levels lower than current limits for HSAs -- $5,000 for individuals and $10,000 for families – and adjusted annually for inflation. The lower limits would also likely impact the actuarial value of insurance plans. The Senate bill also requires all insurance plans to include out-of-pocket limits but uses the current limits for HSAs (currently $5,950 for individuals with self-only coverage and $11,900 for individuals with family coverage in 2010) and adjusted annually for inflation. The out-of-pocket limits would go into effect in 2013 under the House bill and 2014 under the Senate bill.

The Senate bill includes a provision that would prevent small employers from offering plans with deductibles greater than $2,000 for singles and $4,000 for families. The limits on deductibles are indexed to the percentage increase in average per capita premiums. Employers may offer plans with higher deductibles if the employer offers a flexible spending arrangement (FSA) that reimburses the difference between the higher deductible and $2,000 / $4,000.

The House and Senate bills both impose “medical loss ratio” requirements that may create challenges for HDHPs. For example, the House bill requires health insurance carriers to provide rebates to enrollees if the carrier does not spend at least 85 percent of premium revenues on medical claims. The Senate bill would impose a lower standard of 80 percent on small employer and individual insurance policies. Although some of the details on how this provision will work will not be clear until the Secretary of HHS issues regulations, the high medical loss ratio requirements may not be appropriate for plans with high deductibles.

Other Provisions

The Senate bill would create a new “young invincible policy” that provides first dollar coverage for three primary care visits but no other coverage until the individual reaches current law HSA cost-sharing limits. These policies would be limited to those 30 years or younger and individuals exempt from the individual mandate due to affordability or hardship.

2010 HSA contribution limits set by IRS

nospam@example.com (Todd Page) — Fri, 01 Jan 2010 09:21:00 -0600

HSA contribution limits for 2010 are:

Single:$3,050 maximum (up from $3,000 in 2009)
Family:$6,150 maximum (up from $5,950 in 2009)

Over 55 catch up provision: an extra $1,000

US Treasury website

Consider an HSA or HRA when trying to buy health insurance for employees

nospam@example.com (Todd Page) — Tue, 13 Oct 2009 09:29:55 -0500

More and more employers are turning to HSA and HRA qualified plans.

Why?
Affordability.
Plans offer coverage at a high level to keep employees from bankruptcy.
Attractive to younger employees who generally are the hardest to convince they need affordable health insurance.

To read more on this subject click here: HSA's the way to go for some employers

What is a health savings account (HSA)?

nospam@example.com (Todd Page) — Fri, 18 Sep 2009 11:11:00 -0500

HSA' are very popular plans and are getting more and more enrollment each day.

To read more about HSA's click here:HSA's

To get a free, no obligation, affordable health insurance quote for an health savings account qualified plan click here:Free HSA quote

Some common questions about health savings accounts.

nospam@example.com (Todd Page) — Thu, 17 Sep 2009 11:07:00 -0500

For those of you that have questions concerning health savings accounts (HSA's) here is the US Treasury website with helpful information.

Click here:HSA Q&A

To get a free, no obligation, affordable health insurance quote for an health savings account qualified plan click here: HSA free quote

What will happen to Health Savings Accounts?

nospam@example.com (Todd Page) — Wed, 16 Sep 2009 12:40:34 -0500

As a very large en roller of HSA plans (over 72% of our customer base) we are very concerned with the fact HSA's have not been mentioned in the current health insurance bills on the table.

To read more about HSA's click here: HSA's going to still be around?

2010 Health Savings Account (HSA) Contributions Released by IRS.

nospam@example.com (Todd Page) — Wed, 19 Aug 2009 09:50:16 -0500

The IRS/US Treasury Department has released the maximum 2010 HSA contribution limits.

They are as follows:

Single: $3,050
Family: $6,150

Over 55 "catch up provision:Up to an additional $1,000

Affordable Health Insurance is avaiable now....through an HSA.

nospam@example.com (Todd Page) — Mon, 03 Aug 2009 10:02:00 -0500

While we are all waiting on the government to overhaul our current health insurance system why not see how affordable health insurance can be through a health savings account type plan.

To get an instant online quote for affordable health insurance click here: Free health insurance quote

Free Instant Health Insurance Quote from JLBG Health

nospam@example.com (Todd Page) — Fri, 10 Jul 2009 07:16:00 -0500

Health insurance coverage available through JLBG Health in over 45 states Nationwide.

Endorsed by National Federation of Independent Business (NFIB), American Bar Insurance Services (ABA members), The National Small Business Association (NSBA), as well as 300 other National Associations.

For a free health insurance quote click here: Free instant health insurance quote

HSA health insurance enrollment on the rise due to a simple math equation.

nospam@example.com (Todd Page) — Tue, 09 Jun 2009 09:15:49 -0500

HSA compatible health insurance plans are on the rise once again.

Read about it here

Now that HSA's (Health Savings Accounts) are no longer new and many now understand them. Here is the simple math to help you along the way. It's as easy as 1-2-3.

1) First calculate your total exposure (maximum out of pocket) and premium on your current plan.
Example: You now have a $1,500 deductible with 80/20 to the first $5,000 ($1,000 additional out of pocket)
with a $20 DR's office co-pay and a 15/30/50 RX co-pay.
On this plan your maximum exposure would be $2,500 PLUS all your co-pays you pay throughout the year.
The premium for your current plan is $214.00 per month or $2,568 per year.

2) Determine the HSA compatible health plans maximum exposure and premium.

Example: The HSA plan has a $3,000 deductible with 100% coverage thereafter and the premium is $134.00 per month or $1,608 per year.

3) Take the difference in both premiums:$2,568 minus $1,608 which is a $960.00 savings per year. You can now take the $960.00 you saved per year and place it in a tax free account (HSA) and use it to pay down your deductible, leaving you a net maximum exposure of $2,040 or $460 less than your current plan. And if you do not use the money in the HSA it rolls over to next year. Continue paying a higher premium, have no claims, and you will not get a refund.

HSA's really are just simple math. Find out how much you can save by getting a HSA health insurance quote now.

IRS Releases 2010 HSA - Health Savings Account Limits

nospam@example.com (JLBG Health) — Fri, 15 May 2009 07:46:00 -0500

The IRS has released the calendar year 2010 inflation adjusted amounts for health savings accounts. If you are covered under a high deductible health insurance plan (HDHP), as defined by § 223(b)(2)(A), please take note of the limits below.

Annual Contribution Limits:
The 2010 annual limitation on tax deductions is $3050 for self-only coverage and $6,150 for family coverage.

Minimum Deductible:
The 2010 minimum annual deductible under a high deductible health insurance plan (HDHP) is $1,200 for self-only coverage or $2,400 for family coverage.

Out-of-Pocket expenses:
The 2010 annual out-of-pocket expenses (deductibles, co-payments, and other amounts) for a high deductible health insurance plan (HDHP) cannot exceed $5,950 for self-only coverage or $11,900 for family coverage.

Get an instant health insurance quote for a qualified HDHP.

Suze Orman endorses HSA's - Health Savings Accounts and Assurant Health

nospam@example.com (JLBG Health) — Fri, 30 Jan 2009 14:11:01 -0600

Get an instant HSA health insurance quote from Assurant Health.

IRS Releases 2009 HSA - Health Savings Account Limits

nospam@example.com (JLBG Health) — Fri, 16 May 2008 07:24:00 -0500

The IRS has released the calendar year 2009 inflation adjusted amounts for health savings accounts. If you are covered under a high deductible health insurance plan (HDHP), as defined by § 223(b)(2)(A), please take note of the limits below.

Annual Contribution Limits:
The 2009 annual limitation on tax deductions is $3000 for self-only coverage and $5,950 for family coverage.

Minimum Deductible:
The 2009 minimum annual deductible under a high deductible health insurance plan (HDHP) is $1,150 for self-only coverage or $2,300 for family coverage.

Out-of-Pocket expenses:
The 2009 annual out-of-pocket expenses (deductibles, co-payments, and other amounts) for a high deductible health insurance plan (HDHP) cannot exceed $5,800 for self-only coverage or $11,600 for family coverage.

Get an instant health insurance quote for a qualified HDHP.

Health Savings Account

nospam@example.com (JLBG Health) — Mon, 17 Dec 2007 09:26:00 -0600

JLBG Health understands the importance of having access to an affordable health savings account, and through this understanding, JLBG Health is able to offer a range of options that are able to suit various individuals, families, and groups. A health savings account is no longer considered a luxury, with the cost of health on the increase, families and individuals require access to a health savings account that can be utilized when needed most. Families that fail to gain sufficient health insurance coverage leave themselves vulnerable, and face tremendous financial risk. It is thus vital that a sufficient health savings account be secured to make certain that their health issues are cared for and they are not left vulnerable to financial risk. In addition, unexpected and unplanned medical emergencies can lead to huge medical expenses and, in many cases, the necessary funds are not on hand to cover these costs. Studies have shown that medical expenses are one of the leading contributory factors that cause people to file for bankruptcy, and for reasons such as these, an adequate health savings account is of paramount importance to offer protection against unplanned and unexpected medical expenses.

Through the assistance of JLBG Health, individuals, families, and groups are able to gain access to the best health savings account options, which offers a high level of both flexible and portable coverage. Through health savings accounts, you can choose to purchase the benefits that you and your family are most likely to use. Many schemes require you to pay for premiums that cover maternity coverage and for many, maternity coverage is not required. If you should decide to change jobs, you can still make use of the health savings account by continuing to pay the premium; thus, the health savings account is a portable health insurance policy. At JLBG Health, we realize that health insurance coverage is often complex and individuals often do not possess the knowledge to make a sound decision concerning a health saving accounts. For this very reason, JLBG Health is available to offer you a health savings account that is able to meet your requirements and offer sufficient coverage during times of need.

Health care costs in the United States are among the highest in the world, and costs are not predicted to decrease in the foreseeable future. This fact makes it more important for individuals to secure and source a health savings plan that is able to protect them from financial risk and, ultimately, from financial ruin. Life is not predictable and neither are medical emergencies and, thus, it is senseless to leave health insurance planning to chance. When you partner with JLBG Health, you gain access to the best coverage at the most affordable rates that will allow you to provide for your family and make certain that their medical needs are adequately met. JLBG Health is underwritten by the leaders in health insurance coverage, and, as such, is able to offer you access to the best health savings account at the best possible rates. View www.jlbghealth.com, to find out more information relating to our range of health insurance coverage and benefits.