Posts Tagged ‘HSA’

Health saving plans – 2012

Wednesday, December 28th, 2011

Good Neighbor Insurance agents, www.gnazhealth.com, provide their clients with Health Saving Account plans for those residing in Arizona.

Health Savings Accounts (HSAs) were created in 2003 so that individuals covered by high-deductible health plans could receive tax-preferred treatment of money saved for medical expenses.  Medical Saving Account (MSA) plans were the grandfather of high-deductible health plans with tax-preferred saving options but no longer provided. 

Since the HSA is a tax advantaged account it is subject to contribution limits similar to Individual Retirement Accounts. The money you contribute to your HSA through your employer is not subject to federal tax at the time of deposit (Pre-Tax Dollars).  If you are self-employed the dollars contributed are an “above the line” deduction on your taxes.

2012 HSA Contribution Limits

Each year the HSA Contribution Limits are revised (or remain unchanged) based on the inflation rate of the previous year.  This year the HSA Contribution Limits were raised about 1.63% based on the rise of the Consumer Price Index (CPI) in the previous year.  This means that the contribution limit for an individual increased $50 to $3,100 and the limit for families increased $100 to $6,250.  The catch-up provision for those age 55+ remains at $1000. 

2012 Contribution Limits
  Single Plan Family Plan
Maximum Contribution Limit $3,100 $6,250
Minimum Deductible $1,200 $2,400
Maximum Out-of-pocket $6,050 $12,100
Catch-up Contribution (55+) $1,000 $1,000

You must have your HSA-qualified health insurance in place by December 1st in order to qualify for that same year’s tax break.   You may make direct contributions to your HSA bank account until April 15th of the following year to the last year’s contribution limit.

Here is another chart to show the past HSA’s year contributions  

Year Contribution Limit
(Single)		 Contribution Limit
(Family)		 Additional Catch-Up Contribution
(55 or older) (Single and Family)
2004 $2,600 $5,150 $500
2005 $2,650 $5,250 $600
2006 $2,700 $5,450 $700
2007 $2,850 $5,650 $800
2008 $2,900 $5,800 $900
2009 $3,000 $5,950 $1,000
2010 $3,050 $6,150 $1,000
2011 $3,050 $6,150  $1,000
2012 $3,100 $6,250 $1,000

2013 Contribution Limits

At this time the contribution limits for Flexible Spending Accounts (FSA) will be changing.  FSAs is one of the number of tax advantage options that employers (groups) in the U.S. may use to help save on premiums and taxation.  The new PPACA (the new health care law signed into law by President Obama in March of 2010) will limit the amount employees can contribute to a FSA  account.  Note that FSA plans are for those who work for a company.  

However, at this time, HSAs are not set to change to a lower contribution limit.  Good Neighbor Insurance, www.gnazhealth.com, will keep you informed as soon as anything is mentioned on the 2013 annual contributions for HSAs.

Doug Gulleson loves to scuba dive overseas and makes sure he has his US health care and overseas health care information with him at all times when he travels (check out his diving travels at www.douggulleson.com).  Keep our blog close by you, www.gntravelinsurance.com , for continual updates on the changes with the US health care system.

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Posted in Updates 2010-2012 |

Understanding the basics of FSA, HRA, and HSA plans for US group insurance

Wednesday, March 16th, 2011

property and casualty insurance, dental insurance, group insuranceGood Neighbor Insurance (www.gnazhealth.com and www.gninsurance.com) is continuing to update our clients on the new health insurance laws that were signed into law in the spring of 2010.   There are six major coverage options for those in the US and even though some of the rules and regulations are similar for all many differences are there and it all depends on how old you are and for whom you work.  Many critical details of this new insurance law will be clarified in the months and years to come. 

These six major coverage options are:

(1) Individual or family coverage (private health care plans)

(2) Employee/employer group option for small businesses (typically under 50 employees)

(3) Employee/employer group option for large businesses (typically larger than 50 employees)

(4) Exchange options through the state you are residing in (fully integrated 1-1-2014 and are quasi-government and private insurance coverage combined)

(5) Medicare (which include Parts A, B, C, and D) for those 65 years onwards

(6) Full government health plans like Medicaid, CHIP, TRICARE, VA and other coverage plans as may be designated by the Department of Health and Human Services based mostly on financial criteria and/or military service.

FSA – Flexible Spending Account

HRA – Health Reimbursement Account

HSA – Health Saving Account

Please note: HSA plans are medical insurance plans while FSA and HRA are not medical insurance plans.  Instead, FSA and HRA plans are stand-alone benefits to help pay towards HSA deductibles and/or high deductible plans that do not include co-pays.

 

FSA

HRA

HSA

Who Can Use

Any size group (Excludes Partners, more than 2% Stockholders in Sub S Corp, and LLC Members)

Any size group (Excludes Partners, more than 2% Stockholders in Sub S Corp. and LLC Members)

Individuals and any size group

Maximum Dollar Contribution

Employer sets maximum Medical Reimbursement limit. IRS sets Dependent Care limit.

Determined by Employer

Limit set by federal guidelines for single/family (CPI rated annually)

Who Can Contribute

Employee primarily, but Employer can also fund

Employer only

Individuals, Employers & Employees (or both)

Tax Deductible / Tax Free

Yes: Employer/Employee

Yes: Employer/Employee

Yes: Employer/Employee

Who Owns the Account

Employer

Employer

Employee

Portability

No

No

Yes

Rollover

No, Optional Grace Period

Yes.  However, not required

Yes

 

 

FSA

HRA

HSA

Funding

Per pay period by employee

Funded when claim is paid

Funded dollars

Health Plan Styles Required

No restrictions

No restrictions

Aggregated high deductible / No co-pays on office visits or RX (HSA plans are no-co-pay plans)

Section 125 FSA (funds may be used for dictated by the IRS under this section)

N/A

No restriction

Insurance premium(s) (only for age 65 onwards), medical, vision, and dental expenses

Minimum Deductibles

N/A

No restrictions

Set by federal guidelines annually

Maximum Out of Pocket

N/A

No restrictions

Set by federal guidelines annually (out of network not included)

Claims Substantiation

Required

Required

No, Employee’s Responsibility

Non-Qualified Withdraws

Each claim is adjudicated to meet IRC Section 213(d)

Qualified expense only. Employer determines past age 65 payments

Taxable plus 20% penalty to age 65

 

FSA

HRA

HSA

Eligible Expenses

All IRC Section 213(d) expenses. Employer can not restrict

All IRC Section 213(d) expenses. Employer can not restrict

All IRC Section 213(d) expenses. Employer can not restrict

COBRA Required

Yes, MRA only

Yes

No

Doug Gulleson loves to scuba dive overseas and makes sure he has his US health care and overseas health care, www.overseashealthinsurance.com/trip-protection.asp , information with him at all times when he travels   Keep our blog close by you, www.gntravelinsurance.com, for continual updates on the changes with the US health care system.

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Posted in HDHP - High Deductible Health Plan |

2011 annual contribution limits for (HSA) health saving accounts

Wednesday, March 9th, 2011

Good Neighbor Insurance (www.gnazhealth.com and www.gninsurance.com) is continuing to update our clients on the new health insurance laws.   There are six major coverage options for those in the US and even though some of the rules and regulations are similar for all many differences are there and it all depends on how old you are and for whom you work.  Many critical details of this new insurance law will be clarified in the months and years to come. 

These six major coverage options are:

(1) Individual or family coverage (private health care plans)

(2) Employee/employer group option for small businesses (typically under 50 employees)

(3) Employee/employer group option for large businesses (typically larger than 50 employees)

(4) Exchange options through the state you are residing in (fully integrated 1-1-2014 and are quasi-government and private insurance coverage combined)

(5) Medicare (which include Parts A, B, C, and D) for those 65 years onwards

(6) Full government health plans like Medicaid, CHIP, TRICARE, VA and other coverage plans as may be designated by the Department of Health and Human Services based mostly on financial criteria and/or military service.

Annual contribution limits for Health Savings Accounts (HSAs) are reviewed each year for inflation. Below are the contribution limits and health plan deductible requirements that will be in effect for 2011.

 

Annual HSA Contribution Limits      High Deductible Health Plan  
  • For calendar year 2011, the contribution limit for an individual with self-only coverage under a high deductible health plan is $3,050.
  • For calendar year 2011, an HSA-qualified “high deductible health plan” is defined as a health plan with an annual deductible of at least $1,200 for self-only coverage and at least $2,400 for family coverage.
  • For calendar year 2011, the contribution limit for an individual with family coverage under a high deductible health plan is $6,150.
  • Maximum annual out-of-pocket expenses (including deductibles, co-payments, and other amounts but not premiums) are $5,950 for self-only coverage and $11,900 for family coverage.
  • Individuals who are age 55 and older by year end can make an additional “catchup” contribution of up to $1,000 in 2011.

Doug Gulleson loves to scuba dive overseas and makes sure he has his US health care and overseas health care information with him at all times when he travels, http://www.overseashealthinsurance.com/short-term.asp .  Keep our blog close by you, www.gntravelinsurance.com , for continual updates on the changes with the US health care system.

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Posted in 2011 updates |