What is happening in Health Care Insurance?
There is always something happening in the Health Care Insurance Industry. We do our best to keep you informed with these Blog posts. What follows are a few of the happenings in Health Care this month along with a few links that are of real interest to us and maybe you as well. Please feel free to contact us if you have any questions or comments about these highlights.
This is for groups of 1-50 and follows recent announcements by the Centers for Medicare and Medicaid Services (CMS)
Beginning June 5th BCBS will start collecting data related to the Medicare Secondary Payer information required by the Centers for Medicare and Medicaid Services. You will be impacted if you are fully insured and ASO employer groups with 1-150 employees and have not completed the 2018 Employer Acknowledgment form prior to June 5th.
- For calendar year 2019, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,500.
- For calendar year 2019, the annual limitation on deductions under for an individual with family coverage under a high deductible health plan is $7,000.
- High deductible health plan. For calendar year 2019, a “high deductible health plan” is defined as a health plan with an annual deductible that is not less than $1,350 for self-only coverage or $2,700 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,750 for self-only coverage or $13,500 for family coverage.
Type 2018 2019
HDHP Min.Deductible – Single $1,350 $1,350
HDHP Min. Deductible – Family $2,700 $2,700
HDHP Max. Out-of-Pocket – Single $6,650 $6,750
HDHP Max. Out-of-Pocket – Family $13,300 $13,500
HSA Contribution Limit – Single $3,450 $3,500
HSA Contribution Limit – Family $6,900 $7,000
HSA Catch-Up Contribution – 55+ $1,000 $1,000
Chart Source: Flex
Wanted to take a quick moment to let all our readers know that effective immediately for calendar year 2018, the family contribution limit for Health Savings Accounts (HSAs) has been lowered to $6,850 from the previously set amount of $6,900.
Please inform your employees or be aware yourself that the maximum contribution to your HSA has been reduced by $50.00. This may force some HSA owners to make some changes in their contribution amounts to ensure that they will not exceed the maximum. If the employee has already contributed the entire amount for the year, then they will need to receive a refund before the end of the 2018 calendar year.
For individuals who only cover themselves, the deduction remains the same ($3,450) as 2017.
Other types of accounts such as Flexible Spending and Transit were not affected for 2018.
This reduction is due to changes related to the Tax Cuts and Jobs Bill legislation defining how the cost of living rates should be calculated. The Bill states that the cost of living increase must use the “Chained CPI” approach. Chained CPI calculates inflation to include the fact that as some prices increase, some consumers will switch to lower priced products or switch to different products. This consumer activity reduces the overall impact of inflation. Over time, the Chained CPI will ultimately produce lower cost of living increases. The immediate impact of this calculation is to lower the amount that the IRS allows for contribution to the employee’s HSA.
HSA’s are used to help fund high-deductible health plans. Those are defined as plans where the annual deductible is not less than $1,350 for individuals or $2,700 for family coverage and the annual out-of-pocket expenses do not exceed $6,650 for individuals or $13,300 for families.
If you have any questions or wish to talk about how this impacts your business and your employees, please contact us.
Additional Resources may be found here: