How COBRA Works with Healthcare Benefit Accounts
COBRA coverage can work with healthcare benefit accounts such as HSAs, HRAs, and FSAs to help former employees meet their eligible medical expenses.
FSA
Ready to quit smoking? Your FSA or HSA can help
Although COVID-19 was a top health story in 2020, another disturbing health trend also emerged with fewer people quitting smoking. The health dangers of smoking cigarettes have been well-documented since the U.S. surgeon general’s groundbreaking report in 1964. The number of adults who smoke was down to an estimated 14 percent in 2019, and cigarette sales steadily continued declining year after year until 2020, when they increased slightly. 1-800-QUIT-NOW, a national portal connecting callers to local
COVID-19 PPE Now Eligible for FSA, HRA, HSA Plans
The fight against COVID-19 has expanded to the purchase of personal protective equipment (PPE) items. On Friday, March 26, the IRS released Announcement 2021-7, which qualifies PPE purchased for the primary purpose of preventing the spread of COVID-19 as medical expenses under section 213(d) of the Internal Revenue Code. The regulation allows specific items to be purchased with or reimbursed from a health Flexible Spending Account (FSA), Health Reimbursement Arrangement (HRA), or Health Savings Account (HSA).
COVID-19 Outbreak Period for ERISA Plans Expires February 28
Third-Party Administrators (TPAs) need to be aware of the upcoming end to the COVID-19 outbreak period for group health plans. This deadline, which ends February 28, 2021, could cause unfamiliar administrative burdens on TPAs. In May 2020, following the passage of the CARES Act, the IRS and DOL issued a joint notice on COVID-19 deadline extensions for ERISA. The February 28, 2021 end date is based on the CARES Act, which determined the outbreak period
Health FSA and DCAP Carryover Rules Approved for 2021
In December 2020, Congress passed the Consolidated Appropriations Act, 2021 (CAA), a $900 billion COVID stimulus bill. The legislation was aimed at helping Americans cope with pandemic-related challenges. Along with stimulus payments and other financial provisions, the bill also included modified carryover and dependent rules for Dependent Care Assistance Plan (DCAP) benefits, spend-down for health Flexible Spending Accounts (FSAs), election changes, and other updates. Traditionally, DCAP benefits have not included a carryover provision. However, with
Understanding the HSA Withdrawal Penalty and Other Useful Information
Health Savings Accounts (HSAs) are a wonderful tool for saving money on healthcare expenses. When you enroll in a qualified high deductible health plan and sign up for an HSA, you contribute pre-tax money into an account then withdraw those funds for qualified healthcare expenses. When used for qualified expenses, withdrawals are tax-free. However, many HSA owners wonder if the money can be used for non-qualified expenses. If so, is there an HSA withdrawal penalty?
FSA Mid-Year Elections, Grace Periods, Carryover and More: IRS COVID-19 Guidance
In May 2020, the Internal Revenue Service (IRS) published COVID-19 guidance for employer-sponsored healthcare benefits. Drafted to address unanticipated changes in medical and childcare costs due to the COVID-19 emergency, the two Notices – Notice 2020-29 and 2020-33 – relax mid-year election changes for health Flexible Spending Accounts (FSAs) and Dependent Care Assistance Programs (DCAPs). They also provide more flexibility in grace periods for both types of accounts and increase the maximum annual carryover amount
Whitepaper: Addressing Education Gaps is Key to TPA Growth
Consumers have more choice than ever when it comes to healthcare benefits. However, research suggests they are not using those benefits as effectively as they could due to knowledge gaps. For TPAs, understanding where those gaps exist and providing solutions to address them is key to client satisfaction and business growth.
COVID-19 Claims Run Out Extension for FSA and HRA Plans
On April 29, 2020, the Internal Revenue Service (IRS), Department of Labor (DOL), and other federal agencies published a final notice providing COVID-19 relief guidance on COBRA extensions. The notice also extended run out periods for health Flexible Spending Account (FSA) and Health Reimbursement Arrangement (HRA) plans. Learn more about the COVID-19 claims run out extension and what it means for third party administrators, employers and participants. COVID-19 Claims Run Out Extension The final notice, now available
COVID-19 COBRA Extensions and Claims Filing Update
The Internal Revenue Service (IRS), Department of Labor (DOL), and other federal agencies released an update on COBRA extensions and claims filing due to the COVID-19 outbreak. This latest guidance came after Congress passed the CARES Act in late March 2020, along with other initiatives to ease the economic effect on American workers and companies. The final notice, published April 29, 2020, recognized that “participants and beneficiaries covered by group health plans, disability or other employee