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.
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?
On October 12th, following months of failed congressional actions to repeal and replace the Affordable Care Act (ACA), President Trump used his administrative authority to issue a far-reaching executive order that directs the departments of Treasury, Labor, and Health and Human Services (HHS) to “consider” changes to current regulations so that (1) HRAs could be used to cover insurance premiums and be offered without associated group coverage, (2) association health plans (AHPs) could be offered across state lines, and (3) the availability of short-term and limited-duration insurance could be expanded. The executive order does not include details on these requested revisions or provide any substance on how these changes would be implemented, so the CDH industry will continue to meet with and provide feedback to these agencies as they work to implement the executive order.
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