Now You Are In Control!

These health savings plans represent the newest trends in consumer driven healthcare.

Recently approved by congress, these health care savings accounts can reduce costs by 30% without gutting the plan. What this means is you keep preventive care on most plans with doctor’s office copay, not subject to deductible.

HSA (Health Savings Account) Learn more

HRA (Health Reimbursement Account) Learn more

FSA (Flexible Spending Account) Learn more

New HSA Legislature Allows Increased Contributions

We recently received some terrific news regarding HSA legislation! As some of you may be aware, President Bush signed a bill on December 20, 2006, that will allow individuals to contribute more to their HSA accounts. The following summary of the relevant changes that went into effect on January 1st, 2009:

• Individuals may contribute the maximum amount as determined by the IRS even if the individual's deductible is less. The maximum for 2009 is $3,000 for individuals and $5,950 for families. The maximum for 2010 is $3,050 for individuals and $6,100 for families.
• Employees may contribute the maximum annual amount set by the IRS regardless of when their plan coverage began, rather than being prorated. Example: if a family's HDHP coverage begins in December, they may still contribute$5,650 for that year rather than $470.83 (1/12 of $5,650).
• The annual contribution limits set by the IRS for the following year will be released on June 1st rather than in November or December.
• Employers may roll funds from employee HRAs or FSAs into an HSA on a one-time-only basis, provided that:
  • The employer rolls over the lesser of the HRA or FSA balance on the date of transfer or September 21, 2006.
  • Transfers occur before January 1, 2012.
  • The individual maintains an HDHP for at least 12 months following the transfer. If not, the transferred amount is subject to income tax and a 10% excise tax.
  • If employers allow the FSA extension where FSA funds can be used until March 15 of the following year, employees may still contribute to an HSA if their FSA balance is zero or the FSA balance is transferred to an HSA by January 1st.
  • Individuals may transfer money from their IRAs to their HSAs once.
  • As an exception to the comparability rule, employers may contribute more to HSAs for employees who earn less.