http://www.cobracs.com/Rss/HSA.ashx HSA - News & Review 10 In early June, the IRS issued two notices that provide guidance on the rules for contributions to and rollovers into Health Savings Accounts. Notice 2008-52 addresses the implications of the full contribution rule. Notice 2008-51 addresses qualified HSA funding distributions, better known as rollovers from an Individual Retirement Account (IRA) to an HSA. Both of these Notices give further clarification to a series of HSA enhancements that were in the Tax Relief and Health Care Act (TRHCA), which went into effect on January 1, 2007. http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20080610-2.aspx 10 Jun 2008 In early June, the IRS issued two notices that provide guidance on the rules for contributions to and rollovers into Health Savings Accounts. Notice 2008-52 addresses the implications of the full contribution rule. Notice 2008-51 addresses qualified HSA funding distributions, better known as rollovers from an Individual Retirement Account (IRA) to an HSA. Both of these Notices give further clarification to a series of HSA enhancements that were in the Tax Relief and Health Care Act (TRHCA), which went into effect on January 1, 2007. http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20080610-2.aspx 10 Jun 2008 Two federal agencies recently released information on 2009 thresholds related to group health benefits. Benefits and insurance professionals can look on these announcements as a reminder that it is never too early to start planning for 2009. The IRS and the Centers for Medicare and Medicaid Services (CMS) issued cost-of-living adjustments related to HSAs/high-deductible health plans (HDHPs) and Medicare Part D drug benefits, respectively. http://www.cobracs.com/Infinisource/News_Review_Articles/ 10 Jun 2008 With only slight modifications from the proposed version, the IRS recently issued final regulations on how employers can make comparable contributions to eligible employees' HSAs in two scenarios: http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20080512-2.aspx 13 May 2008 IRS added three types of expenses to the approved list of medical expenses when it issued Revenue Ruling 2007-72 in December. Section 213 of the Internal Revenue Code broadly defines medical expenses for the purposes of the medical expense tax deduction and for reimbursement under a Health FSA, Health Reimbursement Arrangement or a Health Savings Account. http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20080107-3.aspx 07 Jan 2008 An employer decides to cover same-sex domestic partners for the first time under its group health plan. True or false, the fair-market value of the domestic partner's coverage is taxable under the Internal Revenue Code. http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20080107-10.aspx 07 Jan 2008 The IRS recently released the 2007 version of Publication 502, which taxpayers use to determine what medical expenses are deductible on their tax returns. This publication also serves as a resource for determining what medical expenses are reimbursable under a Health FSA, Health Savings Account (HSA) or Health Reimbursement Arrangement (HRA). http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20071210-3.aspx 10 Dec 2007 With health care costs spiraling out of control and higher medical and prescription costs, you may find yourself looking for ways to help your clients offset these rising costs. One way may be to offer a qualified high deductible health plan, coupled with a Health Savings Account (HSA), providing an affordable solution for both employers and employees. http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20071112-7.aspx 12 Nov 2007 An employee starts an HSA on October 1, 2007, and elects to contribute the full-year amount available for self-only coverage: $2,850. Assuming there is not a death or case of disability, how long must the employee continue to be eligible to participate in the HSA (i.e., have high-deductible health plan coverage and no disqualifying health coverage) in order avoid the taxation and penalty on the 2007 contributions? http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20070813-5.aspx 13 Aug 2007 On June 1, 2007, the IRS issued proposed regulations providing guidance on how an employer can make comparable contributions to their eligible employees' HSAs in two specific situations: When an employee has not established an HSA or notified the employer that an HSA was established by December 31 When medical expenses exceed the employer’s year-to-date contributions http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20070611-1.aspx 13 Aug 2007 In May, the IRS posted Revenue Procedure 2007-36, which adjusts three major amounts for administration of Health Savings Accounts (HSAs) and high-deductible health plans (HDHPs) in 2008. These limits, based on cost-of-living adjustments, are as follows: http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20070611-2.aspx 11 Jun 2007 The National Anthem plays in the background as a figure of Uncle Sam appears. The picture of patriotism comes to mind for some. For others, the picture of Uncle Sam, with his white hair and goatee, often dressed in red, white and blue with a top hat, bring other thoughts during this time of year – tax time. Never fear, Uncle Sam is here with some written publications to assist. The IRS recently revised two publications to assist with the preparation of taxes, Publications 969 and 15-B. http://www.cobracs.com/Infinisource/News_Review_Articles/news_review20070312-5.aspx 12 Mar 2007 Gift-giving is common during December. So is figuring out what to do with many of those gifts. When the Tax Relief and Health Care Act (TRHCA) became law on December 20, 2006, and expanded several rules related to Health Savings Accounts (HSAs), a common reaction might be: Thanks, but what now? http://www.cobracs.com/news/stories/new_review20070109-4.asp 9 Jan 2007 It may not seem possible, but next year Paul Revere will have an impact on Health Savings Accounts (HSAs), based on a recent IRS Notice. http://www.cobracs.com/news/stories/new_review20061211-4.asp 11 Dec 2006 With the increase in Health Savings Accounts (HSAs), the Department of Labor has seen an increase in questions. As a result, the DOL recently issued Field Assistance Bulletin (FAB) 2006-02, which clarifies the Department’s prior guidance (FAB 2004-01) on how employers can avoid ERISA application to HSAs made available to employees who participate in high deductible health plans (HDHPs). http://www.cobracs.com/news/stories/new_review20061106-1.asp 6 Nov 2006 The IRS recently confirmed what many knew already about taxability of certain payments from Health Reimbursement Arrangements (HRAs). Revenue Ruling 2006-36, issued in August, addressed whether HRAs and other similar reimbursement plans may pay benefits to a designated beneficiary who is not the employee, the employee’s spouse or the employee’s dependents. The short answer is no, they may not. If they do, those amounts are includable in the employee’s gross income. http://www.cobracs.com/news/stories/new_review20060911-4.asp 11 Sep 2006 The recently issued Final Regulations on Employer Comparable Contributions provide employers with greater flexibility with Health Savings Accounts (HSAs), and Infinisource is ready to assist employers and agents. http://www.cobracs.com/news/stories/new_review20060911-5.asp 11 Sep 2006 How would you like the chance to ask a key governmental official a benefit-related question? The American Bar Association’s Joint Committee on Employee Benefits does this annually with four agencies: IRS, DOL, the Centers for Medicare and Medicaid Services (CMS), and the Equal Employment Opportunity Commission (EEOC). http://www.cobracs.com/Infinisource/News_Review_Articles/ 4 Aug 2006 On July 31, 2006, IRS published Final Regulations in the Federal Register that provide further guidance regarding employer comparable contributions to Health Savings Accounts (HSAs). In general, these rules represent good news for employers who are seeking more flexibility in encouraging greater employee participation and investment in HSAs. http://www.cobracs.com/news/stories/new_review20060731.asp 31 Jul 2006 On July 11, 2006, the Internal Revenue Service (IRS) issued Notice 2006-69, which expands the acceptable methods for electronic payment card substantiation for a Flexible Savings Arrangement (FSA), Health Reimbursement Arrangement (HRA) and Dependent Care Assistance Program (DCAP). With one exception, the Notice takes effect immediately, and employers and administrators may rely on the Notice in making any necessary changes to substantiation procedures. http://www.cobracs.com/news/stories/new_review20060712-5.asp 14 Jul 2006 Infinisource, Inc. was among several administrators and associations that presented oral comments at an IRS public hearing on Thursday, February 23, 2006, regarding employers’ comparable contributions to HSAs. The hearing was held on the Proposed Regulations issued under § 4980G that were published as a Notice of Proposed Rulemaking in the Federal Register on August 26, 2005. http://www.cobracs.com/news/stories/newsroom20060314-3.asp 16 Mar 2006 Headlines have boasted more than three million consumers currently enrolled in Health Savings Accounts (HSAs). According to a survey conducted by America’s Health Insurance Plans (AHIP), enrollment has tripled since March of last year. While this number may sound significant, it represents less than five percent of health care consumers. http://www.cobracs.com/news/stories/newsroom20060208-2.asp 8 Feb 2006 Infinisource, Inc. will present oral comments at an IRS public hearing on Thursday, February 23, 2006, on employers’ comparable contributions to HSAs. This hearing is being held in conjunction with the Proposed Regulations issued under § 4980G that were published as a Notice of Proposed Rulemaking in the Federal Register on August 26, 2005. http://www.cobracs.com/Infinisource/News_Review_Articles/ 12 Dec 2005 Transitional relief for certain health plans with non-calendar year renewal dates was provided by the IRS release of Notice 2005-83 on November 17, 2005. This update allows plans some reprieve for participants to be eligible, to the extent that the state mandates have been amended to be Health Spending Account (HSA) compatible. Any plans that would otherwise qualify as high deductible health plans (HDHPs) except for some below-the-deductible benefits due to state mandates may now be able to qualify. http://www.cobracs.com/news/stories/newsroom20051212-1.asp 23 Nov 2005 The IRS provided welcome relief and clarification this week related to the intersection between Health Savings Accounts (HSAs) and Health Flexible Spending Arrangement (Health FSA) grace periods. This is good and timely news for employers taking a first-time dip in the pool of Consumer-Driven Health Care (CDHC) next year. http://www.cobracs.com/news/stories/newsroom20051123-1.asp 23 Nov 2005 COLDWATER, MI – A great deal of interest in Health Savings Accounts (HSAs) has hit the benefit market since the Medicare reform law established the accounts in late 2003. As health care premiums continue to rise as much as eight percent for 2006, employers are looking for ways to reduce costs for group health coverage and many are considering offering a High Deductible Health Plan (HDHP) along with an HSA. http://www.cobracs.com/news/stories/newsroom20051121-4.asp 21 Nov 2005 On October 28, 2005, the Treasury Department and IRS issued maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs). These indexed amounts are for use with HSAs in 2006. http://www.cobracs.com/news/stories/newsroom20051121-2.asp 21 Nov 2005 The transition relief period for individuals with a Health Savings Account (HSA) and a separate plan or rider for pre-deductible prescription drug benefits will come to an end on January 1, 2006. This leaves little time remaining for employers, health insurers and pharmacy benefit managers to modify High Deductible Health Plans (HDHP) to comply. http://www.cobracs.com/news/stories/newsroom20051020-3.asp 20 Oct 2005 The IRS and Treasury released proposed regulations on August 25, 2005, implementing comparability requirements that must be met for employer contributions to eligible employee’s Health Savings Accounts (HSAs). The proposed regulations generally follow the previously issued guidance on comparability rules along with additional clarification with respect to a few issues not previously addressed. Employers who fail to follow comparability rules could be penalized with an excise tax. These rules will not affect HSA contributions made through section 125 cafeteria plans. http://www.cobracs.com/news/stories/newsroom20050920-2.asp 21 Sep 2005 A married individual contributing to a Health Savings Account (HSA) can maintain eligibility even if a spouse has low-deductible family health coverage, but only if the spouses' plan does not cover the individual with the HSA. http://www.cobracs.com/news/stories/newsroom20050517-1.asp 17 May 2005 Health Savings Accounts (HSAs) are still in the infancy stage and therefore seeing a lot of attention from the press, Department of Labor (DOL) and the Internal Revenue Service (IRS). Since inception in December 2003, the IRS has released clarifications and assistance to increase the understanding and value of HSAs. http://www.cobracs.com/news/stories/newsroom20050517-4.asp 17 May 2005 As health benefit costs continue to rise at double-digit rates, more employers are seeking consumer driven health care (CDHC) programs to control costs, which includes adopting a Health Savings Account (HSA). Agents are an important part of the formula due to their critical role of providing employers with information on how to reduce the ever-rising health care costs and put an HSA into place. http://www.cobracs.com/news/stories/newsroom20050421-1.asp 21 Apr 2005 COLDWATER, MI - In response to the increasing popularity of Health Savings Accounts, Infinisource, Inc. has added individual HSAs to its list of consumer driven health care vehicles. Infinisource, a national employee benefits administration and compliance provider, introduced its group HSA product in late 2004. The individual version of the product will be available for people who would like to take advantage of this powerful health care resource on their own. http://www.cobracs.com/news/stories/newsroom20050321-2.asp 21 Mar 2005 Health Savings Accounts (HSAs) are in the news and the biggest buzzword in the insurance industry. Opinions on the value and success of the HSA vary wildly. Some advocates believe that an HSA is the wave of the future and will provide Americans with a chance to become value-conscious shoppers in the health-care marketplace. Critics of the plan question whether HSAs might lead to sicker patients and higher health costs. http://www.cobracs.com/news/stories/newsroom20050222-1.asp 22 Feb 2005 Health Savings Accounts (HSA) are designed to bring consumerism to health care by engaging participants in the decision making process. These types of accounts are rapidly growing in popularity because they slow the cost increase of employer benefit plans, provide a new vehicle for retiree health and bring many individuals affordable health care options. http://www.cobracs.com/news/stories/newsroom20050119-2.asp 19 Jan 2005 On November 19, 2004, the Treasury Department and IRS issued maximum contribution levels for Health Savings Accounts (HSAs) and out-of-pocket spending limits for High Deductible Health Plans (HDHPs). These indexed amounts are for use with HSAs in 2005. http://www.cobracs.com/Infinisource/stories/hsa8.asp 14 Dec 2004 Solution offers market driven account earnings and powerful plan design options COLDWATER, MI – Infinisource Inc. has partnered with the Alliance Benefit Group to offer an innovative Health Savings Account (HSA) solution that boasts market driven interest earnings on accounts and a high level of plan design flexibility for employers. http://www.cobracs.com/Infinisource/News_Review_Articles/ 1 Dec 2004 Many Americans have already decided to take advantage of the HSAs, according to eHealthInsurance, an Internet-based insurance brokerage that offers coverage to individuals and small firms throughout the country. In a recently published analysis of those who have purchased HSAs over the first six months of this year, they found: http://www.cobracs.com/Infinisource/stories/hsa7.asp 20 Oct 2004 On Friday, July 23, 2004, the Treasury Department and the IRS released 88 questions and answers along with including examples to further clarify Health Savings Accounts (HSAs). Since HSAs were signed into law by President Bush in December of last year, we have received numerous questions about how HSAs work, from consumers, from employers, from insurance companies and from various potential HSA trustees, said Acting Assistant Secretary for Tax Policy Greg Jenner. While we have answered many of the pressing questions about HSAs already, we hope that this guidance responds to most of the important remaining questions. http://www.cobracs.com/Infinisource/stories/hsa6.asp 26 Jul 2004 A great deal of press has hit the benefits industry on the subject of Health Saving Accounts (HSAs). Whether it’s about the IRS giving more guidance or experts trying to predict HSA success – HSAs are a hot topic these days. http://www.cobracs.com/Infinisource/stories/hsa5.asp 14 Jul 2004 Clarifications continue to come from the IRS regarding Health Savings Accounts (HSAs). The most recent, released on May 11, 2004, dealt with several situations regarding ways individuals could have access to benefits with Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) and continue to be eligible for an HSA. http://www.cobracs.com/Infinisource/stories/hsa4.asp 12 May 2004 The Medicare Bill released late last year that included Health Savings Accounts (HSAs) left lingering questions on how employers could integrate such plans into their benefit offering. On March 30, 2004, the IRS and Treasury Department responded by releasing a revenue ruling, revenue procedure and two notices. http://www.cobracs.com/Infinisource/stories/hsa2.asp 14 Apr 2004 The U.S. Department of Labor’s Employee Benefits Security Administration (EBSA) released a Field Assistance Bulletin (FAB) providing enforcement guidance to field investigators on Health Savings Accounts (HSAs). http://www.cobracs.com/Infinisource/stories/hsa3.asp 14 Apr 2004 FSAs. MSAs. HRAs. HSAs. Everyone from the President to the Treasury Department continues to support programs designed to somehow take the sting out of rising benefits costs. http://www.cobracs.com/Infinisource/stories/comp1.asp 28 Jan 2004 On December 22, 2003, the Treasury Department and the Internal Revenue Service issued guidance on Health Savings Accounts (HSAs). The guidance provides, in a question and answer format, information that includes what HSAs are, who can have an HSA, how to establish them and the basic rules for contributions and withdrawals from HSAs. In addition, included with this information is a fact sheet on HSAs. http://www.cobracs.com/Infinisource/stories/hsa1.asp 24 Dec 2003 On December 8, 2003, President George W. Bush signed the Medicare Prescription Drug, Improvement and Modernization Act of 2003, previously known as H.R.1. Groups like AARP who supported this legislation and the need for Medicare reform created tremendous media attention on the Medicare prescription component. But, for the benefits industry, the lesser-publicized Health Savings Account (HSA) will bring major changes for consumer driven health care. http://www.cobracs.com/Infinisource/stories/bills2.asp 8 Dec 2003