Blog
Don’t Let New FSA Flexibility Prevent Your HSA Funding
“But this new flexibility can’t erase every potential disqualifying event. If you had a 2020 plan-year Health FSA with a newly extended grace period through the end of 2021, you can’t disenroll from the grace period. The 2020 plan year is over.” William G. (Bill) Stuart Director of Strategy and Compliance January 21, 2021 A.. Read more
The Year in Review – and What a Busy Year It Has Been!
“But retaining the right to continuation of coverage and paying premiums are two different things. If that person ends up in the hospital in February, she’ll have to pay her premiums retroactively to last March to receive coverage.” William G. (Bill) Stuart Director of Strategy and Compliance December 17, 2020 Mark Twain said it best:.. Read more
The Pandemic’s Effect on Nondiscrimination Testing
“Pandemic layoffs have disproportionately affected lower-income wage earners. . . Those higher-income employees’ elections now constitute a much larger percentage of the total program, which could flip the plan from compliance to noncompliance.” William G. (Bill) Stuart Director of Strategy and Compliance December 3, 2020 2020 is the year that has turned many people’s lives.. Read more
Will the New President and Congress Find Common Ground on Healthcare?
“Section 1332 of the ACA gives the Secretary of Health and Human Services broad power to approve state requests to innovate in offering coverage to their populations if the innovations expand coverage and don’t increase costs. The Trump Administration has approved a number of these requests. The Biden Administration is more likely to restrict innovation.. Read more
Accessorizing Your Health Savings Account Program
“A growing number of Health Savings Account owners are building balances to fund qualified expenses in retirement, including Medicare cost-sharing, Medicare premiums, and services (like dental and vision) not covered by Medicare. If they fund a Limited-Purpose Health FSA, they can enjoy the same tax benefits as a withdrawal from a Health Savings Account as.. Read more
Health Savings Accounts Continue to Benefit Owners
“[D]on’t be fooled by the fact that nearly half of all accounts had a balance of less than $500. This is a typical criticism of Health Savings Accounts – that only the wealthy have enough additional income after they’ve paid their bills to fund their accounts. This observation ignores the obvious: This balance figure is.. Read more
ICHRAs Aren’t a Panacea, But They May Help Manage Costs
“With an ICHRA, the company sheds its liability for those high claims. The claims don’t go away. They’re simply shifted from the employer to the nongroup claims pool. Imagine dumping a quart of bleach into a gallon of water and then watering your houseplants. They won’t survive. Dump that same quart of bleach in your.. Read more
A Reform Proposal Built around Health Savings Accounts
“Many economists believe that the [employer] exclusion is a major driver of high premiums, since the federal government taxes a $1 increase in pay but not a $1 increase in medical coverage. That differential tax treatment encourages employees and union members to receive a portion of additional compensation in the form of more benefits (expanded.. Read more
Health Savings Accounts’ Value Heightened during Pandemic
“If you don’t have a sufficient account balance to reimburse all expenses, find some funds, contribute them to your Health Savings Account (if you’re still eligible and haven’t met your contribution limit), and immediately withdraw the money. Voila – you’ve just reduced your taxable income by the amount of that contribution. You won’t receive the.. Read more
A Very Early Look at the 2020 Election and Healthcare
“If the Democrats do win control of the Senate, they will have won seats in states that aren’t breeding grounds for government activism . . . Democrats who win elections in those states won’t be as eager to increase federal control over medical care as are Democrats from states like California, New York, New Jersey,.. Read more
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