Congress Working on COBRA Subsidy Expansion Bills
Two separate bills have now been introduced, one which is more expansive than the other. The smaller of the two bills is HR 3966, which would only extend the ARRA subsidy for involuntary terminations and loss of coverage occurring through June 30, 2010.
November 5, 2009 · Categories: COBRA · Read article »
FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule
At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the "Red Flags" Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC.
November 3, 2009 · Categories: General, HSA, HRA, FSA, Transportation · Read article »
2010 Transportation, Adoption Assistance and Dependent Care Plan Limits
The IRS has released the 2010 cost-of-living adjustments (COLAs) for qualified transportation fringe benefits, adoption assistance and dependent care plans.
Qualified Transportation Fringe Benefits. For 2010, the monthly limit on the amount that may be excluded from an employee's income for qualified parking benefits will be $230, which is unchanged from the 2009 limit. The combined limit for transit passes and vanpooling expenses is also unchanged at $230 due to the American Recovery and Reinvestment Tax Act of 2009 (ARRA), which requires that the two limits be the same through December 2010.
Adoption Assistance Exclusion/Adoption Credit. The maximum amount that may be excluded from an employee's gross income under an employer-provided adoption assistance program (under Code Section 137 ) for the adoption of a child will be $12,170 for 2010 (a $20 increase from 2009). In addition, the maximum adoption credit allowed to an individual (under Code Section 23 ) for the adoption of a child will be $12,170 for 2010. Both the exclusion and the credit will begin to be phased out for individuals with a modified adjusted gross income greater than $182,520 ($340 higher than 2009), and will be entirely phased out for individuals with a modified adjusted gross income of $222,520 or more (also $340 higher than 2009).
DCAPs. The $5,000/$2,500 DCAP limit has not changed?it is a non-indexed limit. But some general 2010 tax limits are relevant to the federal income tax savings under a DCAP?these include the 2010 tax rate tables, the personal exemption amount, and the standard deduction amounts. There are also new limits for the earned income credit and the child tax credit (including temporary changes under ARRA). These amounts are relevant when calculating a participant's federal income tax savings from claiming the dependent care tax credit (DCTC) versus participating in a DCAP.
October 16, 2009 · Categories: General, Transportation · Read article »
Senate Legislation Poses New Threat to Flexible Spending Accounts - Contact Your Elected Representatives to Make Your Voice Heard
On September 16, 2009, Senate Finance Committee Chairman Max Baucus (D-MT) made it clear that he intends to fund health care reform by restricting access and reducing the value of your flexible spending account (FSA). We need your help to help protect FSAs.
Specifically, Sen. Baucus proposes:
Imposing a $2,500 cap on contributions to FSAs which will force many to pay higher taxes and health care costs. This includes individuals and families battling chronic conditions that rely on their FSAs to cover out-of-pocket expenses for ongoing care and medical supplies.
Lumping FSAs together with major medical plans and including the benefit in an excise tax on high-cost insurance plans. Ultimately, this could discourage some employers from offering the benefit.
Limiting the use of FSAs for over-the-counter medications unless you have a doctor's prescription
At the same time, we are fighting back a proposal approved by the House Ways and Means Committee that bans using money set aside in FSAs to buy over-the-counter medications such as aspirin and allergy medications.
Even if you've already emailed and called your elected representatives, we encourage you go to WWW.SAVEMYFLEXPLAN.ORG to send another email and make another phone call on the new pending proposals.
The threat to FSAs is real and your voice will make a difference.
Thanks in advance for your support.
September 17, 2009 · Categories: FSA · Read article »
Minnesota Adds Additional State Subsidy - COBRA Premiums
The state of Minnesota recently added a new provision in their state human services bill to provide an additional state subsidy to cover 35% of COBRA premiums for certain low income individuals living in Minnesota, who are also eligible for the federal COBRA subsidy. To collect the state subsidy, an individual must:
> Sign up for COBRA health care coverage on a timely basis, AND
> Be eligible for the federal COBRA subsidy, AND
> Meet the income and asset limits for a Minnesota health care program.
August 3, 2009 · Categories: COBRA · Read article »
Pharmacies and Drugstores IIAS Transition Period Expires June 30, 2009
As you may know, the IRS issued new regulations in 2007 limited the use of health FSA debit cards to health-care related merchants and merchants who have an Inventory Information Approval System (IIAS) in place. IIAS is an automated system put in place by a merchant that approves eligible medical expenses at the point of purchase by matching the item's SKU to a list of eligible expenses. Overall, IIAS has been a great success by helping to reduce the substantiation participants need to submit under the IRS guidelines. A special transition period is in place that allows use of the debit card at pharmacies and drugstores as health-care related merchants. This special transition period is to end June 30, 2009.
June 16, 2009 · Categories: HSA, HRA, FSA · Read article »
HEALTH CARE REFORM INITIATIVE - CONTACT YOUR CONGRESSIONAL LEADERS TODAY
Health care reform is inevitable and it will happen this year. This is what we are hearing from key Senators and Representatives. Based on conversations we have had with Congressional top aides, we agree that there will be a health care reform bill this year. How health care reform is financed is a key part of the equation and we are asking for your help to contact your Senators and Representatives with your input.
June 12, 2009 · Categories: General, HSA, HRA, FSA · Read article »
2010 HSA Maximums Released in Revenue Procedure 2009-29
The IRS released Revenue Procedure 2009-29 announcing the inflation adjusted amounts for 2010 HSAs.
May 14, 2009 · Categories: HSA · Read article »