Latest News and Alerts

June 20, 2019
Final Ruling on HRA Options - The ruling “New Health Coverage Options for Employers and Employees” (www.irs.gov/newsroom ) was announced on June 13, 2019 by the departments of Labor, Treasury and Health and Human Services. We first told you about the proposed rule in October via an alert published on our website. Although the ruling presents new options, existing HRAs are not impacted. Highlights of the legislation are as follows:

Individual Coverage HRA (ICHRA)

• Employers of any size may establish an HRA that reimburses an employee’s premium for major medical insurance purchased in the individual market (including the Exchange) provided that certain requirements are met.

• If the premium cost exceeds the available HRA benefit, participants will be permitted to pay the difference with pre-tax salary reductions via a Section 125 plan provided that the plan was NOT purchased on the Exchange.

• Employers may continue to offer an existing group health plan to current employees while offering only the ICHRA to new hires (a choice between the two is not permitted).

• ICHRAs do not disqualify participants from contributing to an HSA unless the ICHRA also reimburses out of pocket medical expenses.

Excepted Benefit HRA

Employers who offer group health insurance will be permitted to also offer an HRA to reimburse premiums for certain “excepted benefits” (e.g., vision and dental insurance premiums, COBRA premiums and in some circumstances, premiums for limited duration coverage) up to an annual maximum benefit of $1,800.

As with all HRAs, a limited or unlimited carryover provision may be included. We found the Frequently Asked Questions published along with the ruling helpful.
The new rule dovetails perfectly with GDI’s existing HRA services. We are excited to enter this next phase of consumer-directed health care with our clients and broker partners. Stay tuned!
May 31, 2019
2020 Health Savings Account Limits - The IRS recently announced updated Health Savings Account maximums for the 2020 calendar year.

The HSA annual contribution limit for those with individual coverage has increased from $3,500 to $3,550. The family contribution limit has increased from $7,000 to $7,100. The 2020 minimum statutory deductible for an HSA-qualified High Deductible Health Plan is $1,400/Single and $2,800/Family, the 2020 out-of-pocket limit for these plans is $6,900/Single and $13,800/Family. The 2020 HSA Catch-up contribution remains steady at $1,000.

November 15, 2018
2019 Medical FSA and QTA limits - The IRS has announced that the 2019 salary reduction limit for Medical FSAs is $2,700. There is no change to the annual maximum for Dependent Care FSAs. The new monthly maximums for Qualified Transportation Accounts are $265 for transit expenses and $265 for parking expenses.
October 24, 2018
Feds Announce New HRA Options - A new Proposed Rule, Health Reimbursement Arrangements and other Account Based Group Health Plans was announced yesterday by the Department of Labor, Treasury and Health and Human Services. The proposed regulation, which will be effective for plan years beginning on or after January 1, 2020, makes significant changes to the rules currently applicable to HRAs. It is scheduled to be published in the Federal Register on October 29th followed by a 60-day comment period. Highlights are below:

Premium Reimbursement HRA
Employers of any size may establish an HRA that reimburses an employee’s premium for major medical insurance purchased in the individual market (including the Exchange) provided that certain requirements are met. Participants will be permitted to pay the premium difference with pre-tax salary reductions via a Section 125 plan.

“Stand Alone” HRA
Employers who offer group health insurance will be permitted to offer an HRA to reimburse certain excepted benefits (e.g., dental insurance premiums and premiums for short-term health plans) up to an annual maximum benefit of $1,800. As with all HRAs, a limited or unlimited carryover provision may be included. The new rule dovetails perfectly with GDI’s existing HRA services. We are excited to enter this next phase of consumer-directed health care with our clients and broker partners. Updates will be announced as they occur.