On December 28, 2018, the IRS Office of the Chief Counsel released Informational Letter 2018-0033 to clarify when employers can request to recover mistaken HSA contributions. This letter should be used to interpret IRS Notice 2008-59, the previous guidance that served as a primary source of information on HSA issues and administrative procedures.
President Trump issued an Executive Order that calls for regulations to expand the use of Health Reimbursement Arrangements (HRAs). Learn what they are and when we can expect them to be final.
On July 19, 2018, the House Rules Committee released two HSA-related bills (Rules Committee Prints 115-82 and 115-83) that re-packaged 10 of the 11 bills approved by the House Ways & Means Committee on July 12 into two separate bills. On July 23, these bills were party-line approved 8-4 by the House Rules Committee, and on July 25, they were adopted by the House of Representatives. Now, the bills will move on to the Senate for consideration later this year.
On July 11, 2018, the House Ways and Means committee will mark up its new bill with two of the four HSA Council-proposed provisions expected to be in play – HSAs for working seniors and increasing contributions to the out-of-pocket maximum.
There are plenty of myths surrounding the CDH market. To help dispel some of them, we sat down with WageWorks Chief Compliance Officer, Jody Dietel, who was recently invited to speak in front of the House of Representatives Ways and Means Subcommittee on Health about lowering costs and expanding access to consumer-directed health (CDH) plans.
The consumer-directed healthcare (CDH) industry, represented by the American Bankers Association HSA Council and ECFC, have been busy testifying before House and congressional committees to ignite legislative efforts that make medical coverage more accessible and more affordable to Americans.
The US House of Representatives Republican leadership has issued its tax reform proposal. If enacted as written, it would eliminate some CDH products. The bill also includes good news for the industry. This is just a first step in a long tax reform process that will continue at least until the end of the year. Throughout that time, Alegeus and the CDH industry will actively monitoring this process and educate Congress on the important benefits CDH products provide. UPDATE: Read the blog for an update on the provision regarding Dependent Care FSAs.
On October 31st, the IRS released a notice with guidance on Qualified Small Employer Health Reimbursement Arrangements (QSEHRAs). The guidance is provided in the form of questions and answers and details what is needed to establish a QSEHRA, eligibility for QSEHRA, tax consequences, written notices and how QSEHRAs will interact with HSAs. While these are not the final regulations, the notice does provide some clarity on how to establish and manage a QSEHRA program. Two questions that Alegeus and the CDH industry had requested further guidance on from the IRS were what defines an eligible employer and how a QSEHRA interacts with HSAs. The Notice does provide guidance on those questions.
On October 24th, key congressional healthcare committee leaders issued a bicameral agreement to reform the Affordable Healthcare Act (ACA), including a two-year funding extension for the ACA’s cost-sharing reduction (CSR) payments and increasing the maximum HSA contribution limit. The legislative text for the House and Senate bill was released on November 1st and does include an increase in the HSA contribution limit, but only through 2022.
The IRS has released the cost-of-living adjusted 2018 limits for FSAs, QSEHRAs, transit/parking, 401(k)s, and the adoption expenses exclusion.