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
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.
Will Consolidation of providers reduce health costs?
When a federal judge agreed to dissolve a merger between Idaho’s largest hospital system and doctor practice, it put a Boise suburb at the center of a national debate over the consolidation of American medicine. Similar arguments are being raised in other areas, including Boston, Pittsburgh and Northern California, where hospital systems have gained strength through acquisitions of doctors’ practices and other hospitals at a time of rapid consolidation.
Medicare Advantage Funding Cuts Challanged
A group of 40 Senators have asked the Centers for Medicare Services (CMS) to modrate the scheduled cuts in funding for Medicare Advantage Plans. Scheduled cuts of up to 6% would have a huge impact on medical coverage for seniors.
. Kaiser Health News/Capsules blog (2/18)
Individuals on Medicare Advantage Plans could face Higher Costs
Those inrolled in the Medicare Advantage plans could face premium increases and benefit reductions of $420-$900 next year (2015). If Medicare Advantage (MA) payements are again reduced by 6% a cost increase or benefit reduction could be passed on to the consumer.
Bill Would Increase Medicare Payments to Doctors
With less that two months before Medicare doctors faced a 24% cut, a bill before the house and senate would give doctors a raise in payments from Medicare.