HSA FAMILY CONTRIBUTIONS – IRS PROVIDES RELIEF

We just received this very timely update notice from our OCA Benefits partner and wanted to be sure that you were made aware of the HSA reversion contribution for 2018.

HSA FAMILY CONTRIBUTIONS – IRS PROVIDES RELIEF.

Late last week the IRS released Revenue Procedure 2018-27 that allows health savings account (HSA) holders to treat $6,900 (rather than the previously announced in-year decrease to $6,850) as the maximum annual family HSA contribution limit for 2018.

Why did it happen?

In response to Rev. Proc. 2018-18, stakeholders informed the Treasury Department and the IRS that implementing the $50 reduction to the limitation on deductions for individuals with family coverage would impose numerous unanticipated administrative and financial burdens. Specifically, stakeholders noted that some individuals with family coverage under an HDHP made the maximum HSA contribution for the 2018 calendar year before the issuance of Rev. Proc. 2018-18 reducing the deduction limitation, and that many other individuals made annual salary reduction elections for HSA contributions through their employers’ cafeteria plans based on the $6,900 limit for an individual with family coverage under an HDHP. In response to these concerns, the Treasury Department and the IRS have determined that it is in the best interest of sound and efficient tax administration to allow taxpayers to treat the $6,900 annual limitation originally published in Rev. Proc. 2017-37 as the 2018 inflation adjusted limitation on HSA contributions for eligible individuals with family coverage under an HDHP.

To read the  entire IRS announcement  go to: www.irs.gov/pub/irs-drop/rp-18-27.pdf

Should you have any additional questions, please contact our office.

HSA Contribution Update 2018

On March 5, 2018, the IRS released Revenue Procedure 2018-18 in Internal Revenue Bulletin 2018-10. Included in this Procedure is a reduction to the maximum contribution limit for Health Savings Account (HSA) contributions for calendar year 2018. The new limit for those with family coverage is $6,850. The previous limit had been set at $6,900. The maximum for self-only coverage did not change, and remains at $3,450 for 2018.

For further details regarding this change and HSA Information, please visit https://www.kirwanbenefits.com/health-savings-accounts/

Does Our Health Insurance System Really Provide Choices?

With the ACA falling apart at the seams, how are the carriers watching out for Our Interests and improving Our Outcomes?

The Wall Street Journal last week provided us with some insight regarding the big player’s interest in expanding their health care offerings and controlling their costs. A brief history is helpful.

Aetna unsuccessfully attempted to buy Humana (2015) for $37 Bil, CVS purchased Aetna (2017) for $70 Bil, CIGNA planning to buy Express Scripts (2018) $50 Bil, after failing to receive approval from regulators to buy Aetna (2017). Anthem to launch its own PBM (Pharmacy Benefits Manager) causing harm to its long term partner, Express Scripts, their biggest customer generating $17 Bil. in annual revenues. Seen as retaliation to their impending Anthem divorce, Express Scripts purchased eviCore Health Care (2017) for $3.6 Bil, Walgreens Boots Alliance had been attempting a takeover of AmerisourceBergen Corp, a large drug distributor, with grocer Albertsons Cos agreeing to buy what is left of the Rite Aid Corp.

Oh, did I mention that Amazon is an additional driver in this consolidation of power, as it becomes a competitor in health-care-equipment?

Simply stated, when competition becomes monopolized, who’s controlling Our Choices, maybe I can provide some direction.

As a Registered Employee Benefits Consultant and Financial Advisor, having the distinct privilege of working with the medical community for over 40 years, I recently had the opportunity to be introduced to two relatively new professional “disruptors” that could be a welcome transfer of power back to the small entrepreneur and most importantly, the patient and their choices, while providing reduced costs in the pursuit of Good Health, Better Outcomes, Lower Premiums and More Choices.

Disruptor #1-Physicians dealing with Chronic Care Management by Medicare, who would like to provide better patient care, complementing your current care plans by engaging patients in between office visits. As physicians, you are acutely aware of the studies proving better outcomes of monitored patients. Regrettably, the pressures of volume and care are conflicting, competing and persistent problems for the physician and patient. This surrogate assistant could extend your care into the homes of your patients, increase compliance and improve care and outcomes, resulting in more office visits, while providing for an additional income stream estimated to provide net revenue of $240 per patient.

Disruptor #2-We are all aware of shrinking plan options, network access and excessive and ever escalating premiums. This group will be changing the landscape with their wholly owned reinsurance carrier, allowing them the creative and necessary flexibility to be in tune with the current demands of your patients and, equally important, your Group Benefit Programs, allowing you to essentially create “your own Benefit Plan”. Referenced base pricing (RBP) and Smart Deductibles designed to meet the expanding needs and concerns of your practice, valued employees and overhead, which occupies the second most expensive item on your P&L.

Please check our website Blog for upcoming dinner meetings to introduce you to these “Disruptors”. Feel free to contact my office for any questions in the interim.

The Kirwan Companies, Ltd introduces the HSA-Transfer K

Health Care Affordability for Americans

The Kirwan Companies, Ltd. and HSA Specialist of America have been in the Employee Benefits field for over 40 years and, among our other services, we have specialized in the promotion and education of HSA’s-Health Savings Accounts since their inception as MSA’s-Medical Savings Accounts in 1997.

We have recently advanced the prospect of allowing for the “vested” portion of a Retirement Plan participants’ account to be eligible for a tax free transfer to an HSA Account, as well as for assets in an individual’s IRA Account.

In this regard, we have recently applied to the United States Patent and Trademark Office and we are proud to state that our “Intellectual Property is now Patent Pending”.

HSA Contributions-IRS Announces 2018 Limits

The Internal Revenue Service (IRS) released the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs).

We will provide our readers with any breaking news from our efforts in Washington and would certainly welcome your comments and support in raising even greater interest in our endeavor to provide “Health Care Affordability for Americans”. 2018 HSA Contribution Limits and Tax Deductible Catch Up Contributions 

Individual: $3,450                          Family: $6,900

The 2018 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients on HSA’s since their inception as MSA’s (Medical Savings Accounts) in 1997 and we continue to advocate for the establishment and expansion of these accounts having recently applied for an received our Intellectual Personal Property Patent, “HSA-Transfer-K”, which would allow for the vested benefits of an individual’s Vested Retirement Plan Values to be transferred “tax-free” into your HSA Account.

You can review our Patent proposal, which is under review by the CBO, at our web site at:   www.kirwanbenefits.com/hsa-transfer-k/ 

If you would like additional details on our submission and patent, you can view the background at our web site at: www.kirwanbenefits.com/hsa-transfer-k/

 

Aetna to Withdraw from Small Employer Market in 2018

Due to mounting financial losses and an uncertain marketplace outlook, Aetna has made the decision to leave the Individual market in New Jersey.  As a result, New Jersey law requires a carrier to withdraw from the insured small employer market if it is withdrawing from the individual market.  As such, Aetna will withdraw all of its fully insured medical plans offered in the small employer health insurance market.

What does this mean?

  • Health insurance coverage for all NJ small employers (2-50 full-time employees) will end at midnight on the day before its renewal date beginning with January 1, 2018 renewals.
  • Aetna is required to cease selling new business with effective dates after 6/30/17.
  • Renewals will continue to be produced and serviced as usual through 12/15/17 renewal dates.

What other options exist for NJ Small Employers?

  • At this time Oxford, Horizon BCBS of NJ, QualCare and AmeriHealth continue to offer fully-insured plan options.
  • Aetna & CIGNA partially self-funded options for select groups.
  • Professional Employer Organizations (PEOs) options.

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients and we continue to represent all the insurance carriers on behalf of our clients.

Be assured that we will follow up with our existing Aetna Clients & also welcome new clients in order to address any questions or concerns you may have.

Please feel to contact our office regarding this very important matter!

Beware of Look-A-Like HSA Plans!

13025-warning-sign

Some carriers are offering plans that appear to mimic HSA plans “BUT” their:

Minimum Deductible’s or
Maximum Out-of-Pocket Expenses

exceed the HSA limits, which will then disqualify you from even having a Tax-Deductible HSA Account.

On a more optimistic note, the American Health Care Act of 2017 (AHCA) passed House on May 4 and one of the many proposed changes would allow for a doubling of the current allowable HSA Contributions, which would then exceed currently allowable IRA Contribution levels and nearly approach 401k Contributions.

*Increases the maximum allowable contribution amounts to Health Savings Accounts (HSAs) to at least $6,550 for self only and $13,100 for all other coverage. (the current limit for 2017 is $3,400/$6,750)

The bill allows the use of funds if the account is open within 60 days of the HSA compatible HDHP effective date, 

Currently the account must be open before funds can be used for qualified medical expenses.

Permits husband/wife catch up amounts to be placed into ONE account,

Currently a separate “spousal” account must be open before funds can be used for qualified medical expenses.

Repeals the increased tax penalty of 20%, returning the penalty to 10%, for using funds for non-qualified medical expenses.

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients on HSA’s since their inception as MSA’s (Medical Savings Accounts) in 1997 and we continue to advocate for the establishment and expansion of these accounts having recently applied for and received our Intellectual Personal Property Patent, “HSA-Transfer-K”, which would allow for the vested benefits of an individual’s Vested Retirement Plan Values to be transferred “tax-free” into your HSA Account.

You can review our Patent proposal, which is under review by the CBO, at our web site at: www.kirwanbenefits.com/hsa-transfer-k/

HSA CONTRIBUTIONS. IRS ANNOUNCES 2018 LIMITS.

On Thursday, May 4, the Internal Revenue Service (IRS) released the 2018 inflation-adjusted amounts for Health Savings Accounts (HSAs).

In addition to the chart below that compares the increases in Contribution Limits, there are two additional and very important pieces of this valued program that also increase next year and impact your Coverage in the areas of:

*Minimum Deductibles, and the
*Maximum for out-of-pocket expenses

Minimum Deductible for HDHPs
The IRS also raised the minimum deductible for qualified high deductible health plans (HDHPs). This is the first time since 2015 that the minimum deductible will go up. This also applies to stacked HRAs and FSAs.

In 2018, the individual coverage minimum deductible is $1,350, up $50; the family coverage minimum deductible goes up to $2,700, a $100 increase.

Maximum for Out-of-Pocket Expenses
The maximum limit for out-of-pocket expenses is going up in 2018, as well. The last increase was in 2016.Next year, those with individual coverage will have a $6,650 limit, a $100 increase. Account holders with family coverage see a $200 increase to $13,300.

Catch Up Contributions
The 2018 catch up contribution limit remains the same, at $1,000, for those 55 years of age and older.

2018 HSA Contribution Limits/Minimum Deductible/Out-of-Pocket Expenses

2017 2018
Contribution Limits Individual: $3,400

Family: $6,750

Individual: $3,450

Family: $6,900

Minimum Deductible for HDHPs Individual: $1,300

Family: $2,600

Individual: $1,350

Family: $2,700

Maximum Out-of-Pocket Expenses Individual: $6,550

Family: $13,100

Individual: $6,650

Family: $13,300

The Kirwan Companies, Ltd has been in the vanguard of recommending and educating our clients on HSA’s since their inception as MSA’s (Medical Savings Accounts) in 1997 and we continue to advocate for the establishment and expansion of these accounts having recently applied for and received our Intellectual Personal Property Patent, “HSA-Transfer-K”, which would allow for the vested benefits of an individual’s Vested Retirement Plan Values to be transferred “tax-free” into your HSA Account.

You can review our Patent proposal, which is under review by the CBO, at our web site at:   www.kirwanbenefits.com/hsa-transfer-k/

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