The IRS recently released the 2015 annual deduction limits for a health savings account. These limits are typically adjusted each year for inflation.
The 2015 limits are $3,350 for an individual with self-only coverage and $6,650 for an individual with family coverage. Such deductible contributions can only be made to an HSA that is maintained in conjunction with a high-deductible health plan.
A high-deductible plan is defined as
The Affordable Care Act added a new section 18B to the Fair Labor Standards Act “FLSA.” This new section requires every employer that is subject to the FLSA to provide written notice of the new health insurance exchanges (aka health insurance marketplaces) as a coverage option to all current employees by October 1, 2013. Subsequent new hires must be provided the notice within 14 days of being hired. Generally speaking, businesses that are covered by the FLSA must have at least two employees and have annual sales or business revenue in excess of $500,000. Hospitals, schools and government agencies also are included. All included employers must provide the notice regardless of size. All employees, regardless of part-time or full-time status, are required to receive the notice.
The marketplaces are a new health coverage option for employees who are or are not offered coverage from their employer. The marketplaces will operate in some form in every state. The notices are required to include information about
Construction contractors that are overwhelmed with the tax provisions associated with the Affordable Care Act now have some online help. The Internal Revenue Service recently established a webpage specifically designed to answer questions and provide preliminary guidance:
If you should have any questions regarding above, please contact Mark Flanagan of Aronson’s Employee Benefit Plan Services Group at 301.231.6257.
The Obama Administration has announced the delay of the employer mandate/pay-or-play provisions under the Patient Protection and Affordable Care Act (ACA) until January 1, 2015. Previously, employers with 50 or more full time equivalent employees were required to offer affordable health insurance to employees working more than thirty hours a week by January 1 or pay a “penalty” to the IRS. A $2,000/per employee penalty results when an employee receives a premium subsidy when purchasing coverage on one of the health insurance exchanges.
Presumably, the goal of the delay is to allow the federal government to simplify the various reporting requirements associated with the employer mandate and allow employers to better understand and prepare for its impact. Unfortunately, procrastination seems to be the norm when employers are faced with difficult decisions, and only time will tell if employers use this additional time wisely.
It is important to note that
As a result of the Affordable Care Act (ACA), some employers that sponsor group health plans have begun receiving Medical Loss Ratio (MLR) rebates from their health insurance carrier(s). Upon receipt of these rebate checks, employers have some decisions to make: