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  • May 2018

Blogs May 2018

  1. 2019 Health Savings Account (HSA) Limits Announced

    System Administrator – Tue, 15 May 2018 01:36:47 GMT – 0

    This applies to all employers who offer a High Deductible Health Plan that is Health Savings Account (HSA) eligible.

    Overview

    The Internal Revenue Service has announced the 2019 dollar limitations for Health Savings Accounts as well as underlying qualifying High Deductible Health Plans (available here). The maximum HSA contribution and the out of pocket maximum limits saw increases at both the family and individual levels. The minimum deductible for high deductible health plans for an individual and family stayed the same.

    High Deductible Health Plan Policy Limits

        2018 2019
    Minimum Deductible Individual   $1,350 $1,350
      Family $2,700 $2,700
           
    Maximum Out of
    Pocket Limit
    Individual  $6,650 $6,750
      Family $13,300   $13,500


    Health Savings Account Limits 
     
        2018 2019
    Maximum HSA Contribution Individual    $3,450   $3,500
      Family

     

    $6,900*

    *Transition relief allows for $6,900 contribution in 2018. For more details, see our blog here.

    $7,000
    Over Age 55 Catch-Up Contribution   $1,000  $1,000  

    High Deductible Health Plan Policy Limits

    Any amount can be contributed to an HSA up to the maximum annual contribution, regardless of the actual deductible of the underlying HDHP plan. The HSA contribution rules assume that you will be enrolled on a high deductible health plan for 12 consecutive months.

    Embedded Deductibles on an HSA-Qualified HDHP

    Many qualified high deductible health plans have an aggregate family deductible so that if an employee covers any dependents on the plan, the family deductible applies and the individual deductible is not taken into consideration. However, there are some plans that have an embedded individual deductible such that if one member of the family meets the embedded individual deductible, then the plan coinsurance would start to pay once that individual deductible is met.  In order for such a plan to be a qualified HDHP the embeded individual deductible must be at least the minimum family deductible outlined above. As an example, these types of plans would need to have an embedded individual deductible of $2,700 to remain HSA qualified in 2019.

     
    • Pre-Tax
  2. Patient-Centered Outcomes Research (PCORI) Fee Due By July 31, 2018

    System Administrator – Fri, 11 May 2018 09:48:09 GMT – 0

    This applies to all employers with self-funded health plans who file Form 720.

    Overview

    Under the Affordable Care Act (ACA), all medical plans are responsible for paying the Patient-Centered Outcomes Research (PCORI) fee to the IRS from October 2012 through September 30, 2019. The fee is calculated based on the number of plan participants. For insured medical plans, your insurance carrier will pay the fee on your behalf.

    If your company has a self-insured medical plan, you must file Form 720 and pay the fees directly to the IRS by July 31 of the calendar year immediately following the calendar year in which the plan year ends. This requirement for self-insured medical plans does generally apply to Health Reimbursement Arrangements (HRAs) and some employer-funded Health Flexible Spending Accounts (FSAs). 

    If you provide a medical HRA alongside a fully insured medical plan, you must calculate and pay the PCORI fee for the HRA. If you provide a medical HRA that is integrated with another self-insured medical plan sponsored by the same employer, the HRA is not subject to a separate fee. 

    The PCORI fee assessment only applies to Health FSAs if the employer contribution is greater than $500 and more than the employee’s contribution.

    How Much did the PCORI Fee Increase? 

    The IRS's Notice 2017-61 stated that the applicable dollar amount used to calculate the PCORI fee payable for plan years that end on or after October 1, 2017, and before October 1, 2018, including 2017 calendar year plans, increased from $2.26 to $2.39. 

    Employer Action Item

    Please note the PCORI fee increase when filing Form 720. For plan year 2017, the form is due on July 31, 2018. More information on the fee, including how to calculate number of plan participants, can be found via the IRS website here.

    • ACA
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