Changes to HSA/FSA Reimbursements for 2011

Thursday, September 23rd, 2010 | Uncategorized | Comments Off

Update/Reminder:

The change for eligibility of Over-the-Counter (OTC) items goes into effect on January 1, 2011, regardless of the plan year start date and affects any plan that allows reimbursement of OTC items (Flex plans, HRAs, and HSAs).  All plan participants may still purchase eligible OTC items in the normal manner through December 31, 2010; purchases on or after January 1^st will  fall under the new regulation guidelines.  This means eligible OTC medications and drugs (excluding insulin) will require a doctor’s prescription.  Please note that a prescription will be required, not just a doctor’s recommendation.

It is important to note that pharmacies and stores that sell these OTC items and participate in the IIAS system for health debit card purchases are required to modify the eligibility of these items in their system.  This means the debit card will not work for these items at the point-of-sale. Plan participants should be instructed NOW that they will have limited OTC purchase options without a prescription beginning January 1, 2011.

Congress enacted these restrictions as part of the Health Care Reform discussions.  It was felt that Americans may be “self-medicating” and taking too many OTC medications.  By removing the tax-free status of these items, except with a doctor’s prescription, Congress thinks it will help curb the excessive use of OTC medications.

While a comprehensive list has not been completely generated, the following list of items will require a doctor’s prescription and may not be purchased using a health care debit card; however, they will still be eligible for reimbursement with a doctor’s prescription and proper documentation.  Medications and drugs impacted by this new legislation include:

• · Acid Controllers
• · Allergy & Sinus
• · Antibiotic Products
• · Anti-Diarrheals
• · Anti-Gas
• · Anti-Itch & Insect Bite
• · Anti-parasitic Treatments
• · Baby Rash Ointments/Creams
• · Cold Sore Remedies
• · Cough, Cold & Flu
• · Digestive Aids
• · Feminine Anti-Fungal/Anti-Itch
• · Hemorrhoidal Preps
• · Laxatives
• · Motion Sickness
• · Pain Relief
• · Respiratory Treatments
• · Sleep Aids & Sedatives
• · Stomach Remedies

At this time, the following are examples of some of the OTC items that will remain available for reimbursement without a doctor’s prescription, since they are not considered to be drugs or medications.  These other medical items include:

• · Band Aids
• · Birth Control
• · Braces & Supports
• · Catheters
• · Contact Lens Supplies & Solutions
• · Denture Adhesives
• · Diagnostic Tests & Monitors
• · Elastic Bandages & Wraps
• · First Aid Supplies
• · Insulin & Diabetic Supplies
• · Ostomy Products
• · Reading Glasses
• · Wheelchairs, Walkers, Canes

Grandfathering Decision Making Tool

Tuesday, September 21st, 2010 | Uncategorized | Comments Off

Here is a great interactive tool to help you with the process of deciding if you want to maintain the grandfathered status of your health plan or not.

http://www.makinghealthcarereformwork.com/healthcarereform/

As always, we are here to help if you have questions, but this tool goes over many of the ins and outs of grandfathering, and gives some really good information.

Provision of health care law changing?

Tuesday, September 14th, 2010 | Uncategorized | Comments Off

White House Supports Effort To Scale Back Small Business Provision Of Health Law

“Facing a backlash from small businesses over a new tax-reporting requirement in the healthcare law the president signed in March, the Obama administration is embracing the first change to the landmark legislation,” the Los Angeles Times reports. “In a letter to Senate leaders, Health and Human Services Secretary Kathleen Sebelius and Treasury Secretary Timothy F. Geithner urged the Senate to back a proposal to scale back the new reporting mandate. The law requires businesses to report to the Internal Revenue Service transactions worth more than $600, a provision that was added to the law to raise an estimated $17 billion over a decade and offset the cost of expanding coverage to millions of uninsured Americans.” The Democratic proposal would scale back the provision to include transactions worth more than $5,000 in order to avoid administrative hassles for small businesses. “On Tuesday, the Senate is to take up two competing proposals to change the mandate as amendments to a small-business assistance bill, one by Florida Democrat Bill Nelson and one by Nebraska Republican Mike Johanns” (Levey, 9/14).

Physician Shortage Could Grow Under New Health Law

Friday, September 10th, 2010 | Uncategorized | Comments Off

News outlets report on how primary care might be impacted by the new health law. HealthDay/Bloomberg BusinessWeek: With tens of millions of patients newly insured under the law, “[s]ome experts worry that there could be longer wait times to see a doctor, particularly in rural areas and underserved markets where primary-care physicians are in short supply. … [P]rimary-care physicians make up only 35 percent of America’s physician workforce, and the pipeline of fresh talent is tapering off. Fewer than 20 percent of U.S. medical students are choosing to practice primary-care medicine, according to the Council on Graduate Medical Education, which advises and makes recommendations to the U.S. Department of Health and Human Services and Congress on physician workforce matters. Studies project a shortage of 44,000 to 46,000 primary-care doctors by 2025 unless action is taken to lure more medical students into the field and retain experienced primary-care doctors. And future demand for generalist physicians is expected to swell as the population ages.”

You can read the rest of the article here.

Small Business Tax Credit Calculator

Friday, September 3rd, 2010 | Uncategorized | Comments Off

One provision of the health care reform law was written with small business owners in mind. Based on certain criteria, some eligible small businesses (25 and fewer employees) may get a tax credit of up to 35% (25% for tax-exempt eligible small groups) in 2010. To help you estimate a tax credit amount, we worked with H&R Block to bring you a small business tax credit calculator. Just plug in the requested information to get an estimate on potential health insurance savings under the health care reform law. 

This calculator, powered by H&R Block, can help you understand the potential financial effects of the following health care legislation on small businesses:

• Small business health care premium credit (effective 2010)
• Requirements of provider coverage for employees (effective 2014)
• Penalties for not providing coverage (effective 2014)
• Excise taxes on high-cost health plans (effective 2018) 

Navigate the calculator by clicking on the “Continue” button at the bottom of each section, or you can skip around by selecting the blue bars for the different sections.

http://www.makinghealthcarereformwork.com/healthcarereform/healthcare.html

Health Reform In A Nutshell

Wednesday, September 1st, 2010 | Uncategorized | Comments Off

Please take a look at this great publication, it gives an overview of health reform.

http://www.sbca.net/Health_Reform_What_Small_Businesses_need_know.pdf