Wednesday, January 18, 2012
Tuesday, January 10, 2012
Thursday, December 1, 2011
2012 HSA and FSA Information
What are they?
HSAs are tax-advantaged medical savings accounts available to taxpayers who are enrolled in an HSA-qualified high-deductible health plan. The funds contributed to the account are not subject to federal income tax at the time of deposit. Unused amounts in one year can be carried over to following years and added to subsequent contributions.
What’s new for 2012?
HSA contribution limits and HDHP out-of-pocket maximums will increase slightly, while the HDHP minimum required deductibles remain unchanged.
HSA Contribution Limits:
• Individual (self-only HDHP): $3,100 ($50 increase from 2011)
• Family: $6,250 ($100 increase from 2011)
Limits for catch-up contributions (for persons over age 55): $1,000 (unchanged from 2011)
HDHP Minimum Required Deductibles:
• Self-only: $1,200
• Family: $2,400
HDHP Out-of-Pocket Maximum:
• Self-only: $6,050 (a $100 increase from 2011)
• Family: $12,100 (a $200 increase from 2011)
What changed in 2011?
Effective Jan. 1, 2011, expenses incurred for over-the-counter medicines, with the exception of insulin, will not be eligible for reimbursement under a health FSA, HRA or HSA without a prescription. The penalty for using HSA funds for ineligible expenses increased from 10 percent to 20 percent.
Flexible Spending Accounts
What are they?
• Also known as a flexible spending arrangement, a flexible spending account is a tax-advantaged account that allows an employee to set aside a portion of earnings to pay for qualified medical expenses.
• Unlike health savings accounts or health reimbursement accounts, FSAs are more commonly offered with traditional medical plans.
• Unlike health savings accounts, funds in the account that are unused when the plan year is over are lost and cannot be carried over to the following year.
• Paper forms or a debit card may be used to access account funds.
• The flex spending account allows you to contribute money to the FSA for costs not covered by insurance: deductibles, copays, and coinsurance. In addition, you can use your FSA to pay for health care costs that health insurance doesn’t cover.
What’s new for 2012?
Contribution limits
2012 is the last year that there are no limits. Although there is no limit as mandated by law, the plan must prescribe either a maximum dollar amount or maximum percentage of compensation that can be contributed to the FSA.
What changed in 2011?
Beginning in 2011, FSA funds cannot be used for over-the-counter medicines unless specifically prescribed by a doctor.
What to expect for 2013:
FSA contributions will be limited to $2,500 each year with annual inflation increases
HSAs are tax-advantaged medical savings accounts available to taxpayers who are enrolled in an HSA-qualified high-deductible health plan. The funds contributed to the account are not subject to federal income tax at the time of deposit. Unused amounts in one year can be carried over to following years and added to subsequent contributions.
What’s new for 2012?
HSA contribution limits and HDHP out-of-pocket maximums will increase slightly, while the HDHP minimum required deductibles remain unchanged.
HSA Contribution Limits:
• Individual (self-only HDHP): $3,100 ($50 increase from 2011)
• Family: $6,250 ($100 increase from 2011)
Limits for catch-up contributions (for persons over age 55): $1,000 (unchanged from 2011)
HDHP Minimum Required Deductibles:
• Self-only: $1,200
• Family: $2,400
HDHP Out-of-Pocket Maximum:
• Self-only: $6,050 (a $100 increase from 2011)
• Family: $12,100 (a $200 increase from 2011)
What changed in 2011?
Effective Jan. 1, 2011, expenses incurred for over-the-counter medicines, with the exception of insulin, will not be eligible for reimbursement under a health FSA, HRA or HSA without a prescription. The penalty for using HSA funds for ineligible expenses increased from 10 percent to 20 percent.
Flexible Spending Accounts
What are they?
• Also known as a flexible spending arrangement, a flexible spending account is a tax-advantaged account that allows an employee to set aside a portion of earnings to pay for qualified medical expenses.
• Unlike health savings accounts or health reimbursement accounts, FSAs are more commonly offered with traditional medical plans.
• Unlike health savings accounts, funds in the account that are unused when the plan year is over are lost and cannot be carried over to the following year.
• Paper forms or a debit card may be used to access account funds.
• The flex spending account allows you to contribute money to the FSA for costs not covered by insurance: deductibles, copays, and coinsurance. In addition, you can use your FSA to pay for health care costs that health insurance doesn’t cover.
What’s new for 2012?
Contribution limits
2012 is the last year that there are no limits. Although there is no limit as mandated by law, the plan must prescribe either a maximum dollar amount or maximum percentage of compensation that can be contributed to the FSA.
What changed in 2011?
Beginning in 2011, FSA funds cannot be used for over-the-counter medicines unless specifically prescribed by a doctor.
What to expect for 2013:
FSA contributions will be limited to $2,500 each year with annual inflation increases
Tuesday, November 1, 2011
Employees value benefits more than ever
Benefits matter more than ever to employees. The third annual study of employees’ views by Unum toward their benefits and enrollment was conducted online in December following the 2010 benefits enrollment period among more than 1,700 working adults. The research finds the perceived importance of many employee benefits notably increased from 2008 to 2010 across all age groups.
“This economic environment has caused employees to take a hard look at how to protect their income and savings from not only another recession, but from personal hardship, as well,” says Bill Dalicandro, vice president at Unum. “Employees are recognizing the important role financial protection benefits in particular can play in protecting their financial stability.”
When employees were asked to rate benefits in terms of their importance, regardless of whether or not they were available through their employer, financial protection benefits saw some of the highest gains.
* On a scale of importance from 1 (not at all important) to 10 (extremely important), 53% of employees rated long-term disability insurance an 8 or higher, a seven-point increase from 2008.
* Half of employees rated short-term disability insurance an 8 or higher, up from 45% in 2008.
* Fifty percent of employees gave an 8 or higher rating to accidental injury coverage, a 10-point increase from 2008.
Further, the study finds employees age 45 and older consider long-term disability more important than life insurance as a benefit. “This is an encouraging trend because research shows that employees are far more likely to become disabled than die,” Dalicandro says. “So while life insurance is still very important to have, employees are also recognizing the need to protect their paychecks should they become disabled during their working years.”
But although employees rate the importance of benefits higher, participation has remained relatively constant since 2008 across benefits. Unum’s research also shows employees have had less access to printed benefits education materials and in-person benefits education since 2008, and that some employees are not provided enough time to make informed choices.
“Employees clearly value these benefits, particularly in a struggling economy,” Dalicandro says. “Ensuring that they understand their options and feel comfortable making benefits decisions helps them choose the coverage they need and want.”
From Employee Benefit News
“This economic environment has caused employees to take a hard look at how to protect their income and savings from not only another recession, but from personal hardship, as well,” says Bill Dalicandro, vice president at Unum. “Employees are recognizing the important role financial protection benefits in particular can play in protecting their financial stability.”
When employees were asked to rate benefits in terms of their importance, regardless of whether or not they were available through their employer, financial protection benefits saw some of the highest gains.
* On a scale of importance from 1 (not at all important) to 10 (extremely important), 53% of employees rated long-term disability insurance an 8 or higher, a seven-point increase from 2008.
* Half of employees rated short-term disability insurance an 8 or higher, up from 45% in 2008.
* Fifty percent of employees gave an 8 or higher rating to accidental injury coverage, a 10-point increase from 2008.
Further, the study finds employees age 45 and older consider long-term disability more important than life insurance as a benefit. “This is an encouraging trend because research shows that employees are far more likely to become disabled than die,” Dalicandro says. “So while life insurance is still very important to have, employees are also recognizing the need to protect their paychecks should they become disabled during their working years.”
But although employees rate the importance of benefits higher, participation has remained relatively constant since 2008 across benefits. Unum’s research also shows employees have had less access to printed benefits education materials and in-person benefits education since 2008, and that some employees are not provided enough time to make informed choices.
“Employees clearly value these benefits, particularly in a struggling economy,” Dalicandro says. “Ensuring that they understand their options and feel comfortable making benefits decisions helps them choose the coverage they need and want.”
From Employee Benefit News
Thursday, October 13, 2011
Tuesday, September 6, 2011
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