If President Trump were to issue an executive order resending the exemption for Politicians from the Affordable Care Act (ACA “ObamacareP}, how quickly do you think the Congress and/or Senate would come up with something workable? Or do you think they could live with the same coverage you live with?
Category Archives: Group Health Plans
EpiPen – $465 Million Settlement
The New York Times (free-article access for SmartBrief readers) (10/7)
IRS grants extension for filing of MEC
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ACA Funding Delays
Congress is likely to send a spending bill to President Barack Obama that delays funding for the Affordable Care Act. The draft bill delays by two years implementation of the law’s taxes on medical devices and high-cost health insurance plans, and delays by one year a tax on insurers. The delays are likely to be extended in future spending bills, creating a de facto repeal, former Obama administration budget director Peter Orszag said. The New York Times (free-article access for SmartBrief readers) (12/16), Modern Healthcare (tiered subscription model) (12/16), The Wall Street Journal (tiered subscription model) (12/16)
Keep Your Eyes on Health Savings Accounts
Rep. Michael Burgess (R-TX) has introduced legislation that would expand the use of Health Savings Accounts. Current law only allows HSAs to be purchased for high-deductible health plans, and contributions are restricted to levels that are often substantially lower than deductibles. The Health Savings Act of 2014 (H.R. 4777) would ensure HSAs may be used more broadly, thereby increasing patient choice in how their health care dollars are spent.
IRS – Illegal for employers to dump employees into Exchange
On May 16, 2014, the Internal Revenue Service (IRS) issued an FAQ response to clarify whether employers can provide added compensation to employees, so they may purchase individual health coverage.
The IRS FAQ answer says it is illegal for an employer that does not establish health coverage for employees to simply pay for individual coverage through a qualified health plan or a state marketplace (or the federal marketplace). It is also illegal for an employer to provide added cash compensation to an employee to pay for individual coverage.
An employer that takes part in such an arrangement will be subject to an excise tax of $100 per day or $36,500 per year per employee.
You can link to the full IRS FAQ here.
This does not apply if an employee chooses to pay for individual health insurance with after tax income
Mental Health Coverage required in new ACA Plans
The Mental Health Parity and Addiction Equity Act, which was approved in 2008, requires insurers to provide mental health care that is comparable to or better than physical health coverage. However, only 4% of people surveyed recently by the American Psychological Association said they knew of the law, the same percentage as in 2010.Employee Benefit News (5/21)
Dropping health coverage could have tax, morale implications
Providing health care can be costly for small firms, but there are factors to consider before dropping coverage. Eliminating coverage could alter your tax burden, and it could have a negative effect on employees’ morale, experts say. “To go to your employees and say we’re throwing you out into the Wild West, go out and find your own coverage … may not go over well, especially [among] older employees and those who will get zero subsidy,” said Hugo Sibrian, CEO of Benefits & Risk Solutions. Bloomberg Businessweek (5/8)
Rolling Over a Health Savings Account
HSA money can be rolled from one administrator to another, and you can have more than one HSA as long as your total contributions for the year aren’t more than the annual limits allow.
Health Savings Accounts: More Than a Spending Account
HSAs offer consumers a unique vehicle to save for healthcare costs both now and into retirement years. However, many consumers view HSAs only as a spending account for managing in-year expenses. Employers and HSA program owners that are successful in helping employees understand the full HSA value proposition will benefit from increased employee HSA adoption.
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employee HSA adoption.