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.
By the end of 2019, 72% of large employers will offer a consumer directed health plan (CDHP). But at the same time, only a third of eligible employees are enrolled in CDHPs. So what’s going wrong?
Fraud is, and will continue to be, a major concern for the healthcare industry. But, if we take it seriously, and allocate the resourves necessary to manage it effectively, we can largely prevent it from negatively affecting our customers' account security and user experience.
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.
Senators strike bipartisan deal on a short-term Afffordable Care Act (ACA) fix, but is it dead on arrival?
On October 12th, the US House of Representatives Financial Services Committee passed the “Pass Act of 2017.” If enacted this bill would repeal the Department of Labor (DOL) fiduciary rule and change the jurisdiction of fiduciary duty regulation to the Securities and Exchange Commission (SEC). Can this bill pass the full House and Senate?