As of 2013, there is a $2500 maximum limit on employee payroll contributions towards all medical FSA accounts.
- The Affordable Care Act (ACA) is placing additional requirements on a medical Flexible Spending Account (FSA) effective with the 2013 calendar year. A $2500 maximum limit on employee payroll contributions will be imposed on all medical FSA accounts.
- Communicate this new requirement to your clients to prepare them for open enrollment. Please note that unlike the dependent care FSA limit of $5000 per family, the medical FSA limit is on a per account holder basis.
Past Topics:
The temporary increase to the monthly reimbursement maximums for Transportation Reimbursement Accounts (TRA), as issued by the Internal Revenue Service (IRS), is set to expire on December 31, 2011.
If you have clients that offer a TRA for their employees and you have not already informed them of this change, you will want to alert them that beginning January 1, 2012, the new reimbursement limits are as follows:
- Transit passes and vanpooling (combined) - $125 per month
- Qualified parking - $240 per month
If you have questions about this information, contact SelectAccount at 1-888-460-4015.
SelectAccount announces 'Perfect Match' HSA promotion.
Find out if any of your clients are eligible for this limited-time offer for people with individual health plan coverage.
Watch our new HSA open
enrollment video
Educating
employees during open enrollment just got easier thanks to our new
professionally recorded HSA open enrollment presentation.
2012 Minimum Deductibles for HSA Compliant HDHPs
- Individual $1,200 (unchanged)
- Family $2,400 (unchanged)
2012 Maximum Out-of-Pockets for HSA Compliant HDHPs
- Individual $ 6,050 (2011 limit is $5,950)
- Family $12,100 (2011 limit is $11,900)
2012 Maximum Annual Contribution Levels
- Individual $3,100 (2011 maximum is $3,050)
- Family $6,250 (2011 maximum is $6,150)
"Catch up" amount for 55+ account holders is $1,000 (unchanged)
Guidance for designing an HSA-compliant health plan that has 4th quarter deductible carryover and/or individual “embedded” deductibles:
4th quarter carryover
Remember that all small group HSA-compliant HDHPs are currently designed to include carryover. If a large group chooses to include the benefit of 4th quarter carryover in their HDHP design, the minimum annual deductible must be increased by 25 percent to accommodate the extended deductible period. This means in 2011, plans with 4th quarter carryover must have a deductible of at least $1,500 for self-only coverage, $3,000 for family coverage.
HSA-compliant HDHP with an embedded deductible
It is permissible to have an individual member (embedded) deductible on family policies as long as the individual deductible is not less than the minimum family deductible amount established by HSA law ($2,400 in 2011).
4th quarter carryover and an embedded deductible
If a group wants both an individual “embedded” deductible and 4thquarter deductible carryover, the minimum individual deductible required is $3,000 ($2,400 based on the embedded deductible rule, plus an additional 25 percent based on the fourth quarter deductible carryover rule).
If you have questions about this information, contact SelectAccount at 1-888-460-4015.