On Thursday, May 4, 2017, the US House of Representatives passed the American Health Care Act by the slimmest of margins with no Democrats voting in favor of the bill. Amendments to the original bill attracted more support from both moderate and conservative Republicans by the introduction of two amendments: one that gives more leeway to the states to request waivers from the more onerous provisions of the ACA that cannot be changed through the budget reconciliation process, and a second one that adds $8 billion of funding to the bill to help improve the “high-risk pools” that could be set up by states to provide coverage to individuals with pre-existing conditions who cannot find affordable insurance in the open market.
Lisa Schmitz Mazur wrote this bylined article on the challenges employers face in getting employees to use telehealth benefits. Suggesting that employees either are unaware of or are hesitant to use these benefits, Ms. Mazur wrote that “employers and telehealth providers must develop and implement (often in tandem) strategies for addressing these barriers to increase employee utilization.”
Recently the Internal Revenue Service (IRS) announced (see Revenue Procedure 2016-28) cost-of-living adjustments to the applicable dollar limits for health savings accounts (HSAs) and high-deductible health plans (HDHPs) for 2017. Although one of the dollar limits currently in effect for 2016 will change, the majority of the limits will remain unchanged for 2017, with some of the limits remaining unchanged since 2015. The table below compares the applicable dollar limits for HSAs and HDHPs for 2016 and 2017.
HEALTH AND WELFARE PLAN LIMITS20172016HDHP – Maximum annual out-of-pocket limit (excluding premiums): Self-only coverage $6,550 $6,550 Family coverage $13,100 $13,100 HDHP – Minimum annual deductible: Self-only coverage $1,300 $1,300 Family coverage $2,600 $2,600 HSA – Annual contribution limit: Self-only coverage $3,400 $3,350 Family coverage $6,750 $6,750 Catch-up contributions (age 55 or older) $1,000 $1,000
Plan sponsors should update payroll and plan administration systems for the 2017 cost-of-living adjustments and should incorporate the new limits in relevant participant communications, like open enrollment and communication materials, plan documents and summary plan descriptions.
For further information about applying the new HSA and HDHP plan limits for 2017, contact your regular McDermott lawyer or one of the contacts listed below.
On April 23, 2014, the U.S. Treasury Department and Internal Revenue Service (IRS) released Revenue Procedure 2014-30, which lists the 2015 indexed amounts, adjusted for inflation, for health savings accounts and high-deductible health plans (HDHPs). The following table lists the current 2014 amounts and the new 2015 amounts:
Calendar Year 2014
Calendar Year 2015
Self-only
Family
Self-only
Family
Annual Contribution Limit
$3,300
$6,550
$3,350
$6,650
HDHP Minimum Deductible
$1,250
$2,500
$1,300
$2,600
HDHP Out-of-Pocket Limit (includes deductibles, co-payments and other amounts but not premiums)
$6,350
$12,700
$6,450
$12,900
The Revenue Procedure is effective for calendar year 2015.
The Internal Revenue Service has recently released the latest versions of its Publications 502 and 503. Publication 502 is a list of medical and dental expenses (including the Health Coverage Tax Credit) that are deductible by taxpayers on their 2013 federal income tax returns, while Publication 503 is a list of child and dependent care expenses for use in preparing a taxpayer’s 2013 return. These publications are also useful in the administration of health and dependent care flexible spending accounts, as well as health savings accounts and health reimbursement accounts.
The Internal Revenue Service recently issued its 2014 versions of the Health Savings Account contribution and distribution forms and instructions. The forms released, and a link to those forms are below—
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