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Skip to main content Home Products Learn About Contact Sign In Member Group Agent Products Learn About Contact Sign in Search site Search Search Go back to previous article Sign in Expand/collapse global hierarchy Expand/collapse global location What can we help you with today? News Updates Regulatory Updates We're here to help during COVID-19. Visit our guide for information relating to the coronavirus and your accounts. Individuals/Employees Employers Brokers/Agents New to this site? Here's a quick introductory video . News Updates Update to Proposed HRA Expansion - 11/19/2018 A new IRS notice addresses issues under the Code concerning the requirements of Section 4980H (employer mandate) and Section 105(h) (non-discrimination tests). The IRS is working through disparities of the new HRA rules and the employer mandate rule. The employer mandate requires employers to offer affordable coverage that meets a minimum value (comprehensive benefits set at 60 percent actuarial value). Below are the primary highlights of the notice that we feel are important to note. Application of the Employer Mandate and Applicable Large Employer (50 or more employees) that offers an Integrated HRA Affordability - The IRS anticipates that the existing safe harbors under the Employer Mandate (W-2 Safe Harbor, Rate of Pay Safe Harbor, and Federal Poverty Line Safe Harbor) will continue to apply in conjunction with the following: Location Safe Harbor - What is deemed affordable is based on the self-only lowest cost silver plan offered on the exchange and is based on where the primary site of employment is rather than on where the employee resides. Calendar/Non-Calendar Year Safe Harbors - If the group's plan year falls on January 1st, the employer can use the cost of the lowest cost silver plan for the prior plan year, whereas if the groups plan year falls midyear (typically 7/1), the group can use the cost of the silver plan in existence on the first month of the plan. In conjunction with the Proposed HRA Rule and Potential Affordability Safe Harbors, the following Section 105(h) issues were also addressed: Nondiscrimination Rules Uniformity Test - In order to meet nondiscrimination rules, HRA amounts cannot be varied for different employee classes. The IRS expects that as long as the employer offers uniform contributions to all participants in a particular class, they would meet the 105 rules. Age Variance - An exception to the uniform contribution rule above is that there can be variation within a class due to age so long as the variation coincides with the age-based cost of the individual insurance plan. The IRS continues to invite comments on the HRA Proposed Rule and on Notice 2018-88, which should be submitted no later than December 28, 2018. The proposed HRA expansion would go into effect January 1, 2020. Federal Agencies Propose Expansion of HRAs - 10/26/2018 On October 24, 2018 the DOL, IRS, and HHS released proposed regulations broadening HRA rules which would allow employers to offer HRAs that reimburse an employee's individual insurance premiums or a standalone HRA that reimburses medical expenses of up to $1,800 a year. This would go into effect January 1, 2020. The proposed regulations would allow for the following two types of HRAs: Premium Reimbursement HRA (PRA) : The PRA would reimburse employees for the cost of individual insurance plans. Standalone HRA : Standalone HRAs are not integrated in a group health plan or attached to an individual insurance policy. If this proposal goes into effect, employers looking to incorporate these new HRA types into their benefits offerings may need to amend their cafeteria and ERISA plan documents and provide a notice to advise employees that electing a PRA may prevent them from receiving an exchange premium tax credits (PTC). As always, Further will ensure that we have supporting materials available on this site if we administer these new accounts to any groups. House Passes Two Bills Modernizing HSA and FSA Rules - 7/25/2018 The Restoring Access to Medication and Modernizing Health Savings Accounts Act (H.R. 6199) and the Increasing Access to Lower Premium Plans and Expanding Health Savings Accounts Act (H.R. 6311), if signed into law, would: Allow individuals with bronze or catastrophic coverage through government-approved health insurance plans to contribute to an HSA. Allow unused FSA funds to roll over to the following year. Current IRS rules limit individuals to carry forward up to $500 from an FSA into the following year. Broaden the qualified medical expense definition to include over-the-counter drugs, menstrual care products, and certain sports and fitness expenses. Increase the contribution limits for HSAs. If these bills become law, it could significantly increase the popularity and usage of HSAs. Additionally, studies show that the popularity of medical FSAs is declining. If these bills become law, it could reverse that trend. Both pieces of legislation are expected to go to the Senate for vote later this year. Before they become law, President Donald Trump will need to sign. Further will continue to monitor events and provide updates. Proposed Legislation To Increase HSA Contribution Limits - 11/7/2017 Senators Orrin Hatch (R-Utah) and Kevin Brady (R-Texas) introduced legislation to extend Affordable Care Act (ACA, also known as Obamacare) insurance subsidies through 2019. The legislation also proposes increasing the maximum health savings account (HSA) contribution limits to the plan deductible or out of pocket limit. At this time, contributions limits have not changed for HSAs; the current 2018 HSA contributions limits remain at $3,450 for single and $6,900 for family. Timing of when Congress will vote on the legislation is to be determined. SelectAccount is continuing to monitor events. On Oct. 12, President Donald Trump signed an executive order that directs federal regulators to issue new rules regarding health reimbursement arrangements (HRAs), association group health plans, and short-term health policies. President Trump has asked agencies to issue new regulations broadening the use and availability of HRAs, specifically allowing for non-group HRAs. The agencies have 120 days to issue proposed regulations. Currently, the existing rules surrounding HRAs have not changed. Further is continuing to monitor events. Regulatory Updates CARES Act Expands Eligible Expenses to Include OTC and Feminine Hygiene Products - 3/27/2020 The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday, March 27th. One component of the law was an expansion of products eligible for reimbursement from health savings accounts (HSAs) and medical flexible spending accounts (FSAs). Changes include the addition of over-the-counter (OTC) drugs and medicines, which previously were only eligible for reimbursement with a prescription. Additionally, feminine hygiene products such as tampons, pads, liners, cups, and sponges are now eligible as well. Members may use an HSA or FSA to purchase those items, or file reimbursement claims. These are permanent changes. The CARES Act also addressed telehealth accessibility. We encourage those interested in telehealth to check with your health plan provider to see what your coverage is. For more information on the COVID-19 pandemic and the effect on spending accounts, visit our COVID-19 FAQ guide . IRS Extends HSA Contribution Deadline to July 15, 2020 - 3/20/2020 On March 20, in response to the COVID-19 pandemic, IRS Notice 2020-17 extended the federal tax filing deadline by three months to July 15, 2020. Included with that, health savings account (HSA) holders now have until July 15 to make contributions to their HSA and count toward their 2019 contribution totals. The 2019 maximum HSA contributions are $3,500 for those with individual plans and $7,000 for those with family plans. If the member is 55 years old or older, the member can contribute an additional...