Compliance April 17, 2019

Senators Introduce Legislation to Further AHPs

Last June, the Department of Labor (DOL) finalized regulations to expand the opportunity to offer employment-based health insurance to small businesses through Association Health Plans (AHPs), but a district court struck them down.

Reported by

Last June, the Department of Labor (DOL) finalized regulations to expand the opportunity to offer employment-based health insurance to small businesses through Small Business Health Plans, also known as Association Health Plans (AHPs). However, earlier this month, a district court determined that the DOL’s regulations are unlawful, leaving in limbo the creation of new AHPs.

For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.

Now, a group of senators, led by Senator Mike Enzi, R-Wyoming, have introduced legislation that would ensure the new pathway remains available for small businesses to offer AHPs under the DOL’s final rule.

AHPs are intended to allow small businesses to group together and leverage power in numbers to obtain comprehensive and affordable health insurance as though they were a single large employer. The coverage offered to association members is subject to the consumer protection requirements that apply to the nearly 160 million Americans who receive coverage from large employers.

According to a press release on Enzi’s website, roughly 30 AHPs have formed under the rule so far. According to the Congressional Budget Office, about 4 million people are expected to enroll in an AHP by 2023, including 400,000 who would otherwise be uninsured.

“Association health plans offer millions of Americans in the individual health insurance market who have been left behind by Obamacare the opportunity to buy the same kind of lower-cost health insurance with the same patient protections as the roughly 160 million Americans who already get their insurance by working for a large employer,” says Chairman of the Senate Health, Education, Labor and Pensions Committee Senator Lamar Alexander, R-Tennessee. “This legislation would make sure that working Americans who are uninsured, underinsured, or paying through the nose in the individual market can continue to have this option.”
Products April 17, 2019

WEX Health HSAs Added to MassMutual Wellness Platform

MassMutual cites data from Aite Group showing usage of HSAs is projected to outpace other financial accounts for health care, such as HRAs and FSAs.

Reported by

Massachusetts Mutual Life Insurance Co. (MassMutual) is expanding its wealth accumulation and protection benefits at the workplace by making health savings accounts (HSAs) available on its MapMyFinances financial wellness tool.

The HSAs are powered by WEX Health Inc., enabling workers covered by high-deductible health care plans to put aside money on a tax-favored basis for eligible health care expenses during their working years as well as retirement. According to MassMutual, contributions to the account may be made by the employee, the employer or both, and the account is owned by the employee.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Survey data shows business owners are interested in speaking with advisers about health savings accounts (HSAs). That is driven by the fact that 55% of business owners think health care is the biggest expense for retirees, followed by housing (24%), food (6%) and transportation (1%). However, only 20% of business owners say they fully understand how HSAs work. Many business owners did not know that HSAs must be paired with high-deductible health plans, for example. Many also did not know that employers can contribute to an HSA and that the balances carry over year-to-year.

MassMutual cites other data from Aite Group showing usage of HSAs is projected to outpace other financial accounts for health care such as health reimbursement arrangements (HRAs) and flexible spending accounts (FSAs) by 2021. Notably, while HRAs and FSAs require eligible expenses to be validated by a third party, the IRS does not require such validation for HSAs. However, it is required that consumers keep all of their medical receipts for eligible expenses in the event of a tax audit.

Based on the data provided, MassMutual’s MapMyFinances tool analyzes the user’s personal financial needs and sets priorities accordingly. While health care coverage is typically a top priority for most people, other financial needs such as retirement savings; life, disability, accident and critical insurance coverage; college savings; debt reduction and others vary depending upon the person’s family situation and budget.

«