Compliance June 17, 2013

Bill Would Expand HSAs, FSAs

June 17, 2013 (PLANSPONSOR.com) – The Family and Retirement Health Investment Act of 2013 has been presented to the U.S. Senate in an effort to strengthen and expand health savings accounts (HSAs) and flexible spending arrangements (FSAs).
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U.S. Senator Orrin Hatch (R-Utah) and U.S. Senator Marco Rubio (R-Florida) introduced the bill (S.1031), with counterpart legislation introduced in the U.S. House of Representatives by U.S. Representative Erik Paulsen (R-Minnesota).

Hatch and Rubio said the bill would:
 

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  • Allow a husband and wife to make catch-up contributions to the same HSA;
  • Remove the onerous new restrictions on the use of HSA and FSA dollars for the purchase of over-the-counter drugs;
  • Clarify the use of prescription drugs as preventive care that will not be subject to an HSA-eligible plan deductible;
  • Reauthorize the use of Medicaid health opportunity accounts;
  • Promote wellness by expanding the definition of qualified medical expenses to encourage more exercise and better nutrition;
  • Allow seniors enrolled in Medicare Part A to continue contributing to their HSAs; and
  • Allow for the purchase of low-premium health insurance and long-term care insurance with HSA dollars.


“Congress created health savings accounts and flexible spending accounts to help Americans pay for health care. Over the years, these plans have grown in popularity and it’s well past time Congress act to improve them,” said Hatch. Streamlining these health care products, he said, will provide millions of families, workers, and retirees the opportunity to put away tax-free savings to pay for their personal medical costs.

The full text of the bill can be found here.

Compliance June 17, 2013

Federal and Mass. Health Reform May Conflict

June 17, 2013 (PLANSPONSOR.com) – Differences between the Patient Protection and Affordable Care Act (PPACA) and the Massachusetts health care law may affect employers with Massachusetts employees.
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A bulletin from Towers Watson said the individual mandate under the Massachusetts health care law will apparently remain in effect in 2014. So, Massachusetts residents must ensure they meet both the minimum essential coverage (MEC) requirement imposed by the PPACA and the minimum creditable coverage (MCC) requirement imposed by the Massachusetts law in order to avoid penalties under those laws.

Differences between the PPACA and Massachusetts requirements may require employers to obtain a certification (waiver) from the Massachusetts Health Connector (the Connector) to ensure their employees do not face penalties under the state health care reform law. The Massachusetts employer mandate also remains in effect for 2014, barring any last-minute action by Massachusetts state legislators.

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Towers Watson determined that some key action items for employers include:

  • Reviewing their plans to determine whether the coverage meets the Massachusetts MCC requirements;
  • If coverage does not meet the MCC requirements, employers ensuring they have a certification from the Connector. Employers that do not have a certification should file for one; and
  • Those with employees in Massachusetts may want to communicate that such employees will be subject to both the federal and state requirements, and let them know whether their health coverage meets the state standards.

 

Massachusetts Governor Deval Patrick has proposed updating the state’s universal health care regulations in anticipation of provisions of the PPACA (see “Mass.Governor Proposes Changes to State Health Law”).

More information is here.

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