Executive Order on Healthcare: New Directives Order Price Transparency, FSA Changes

| posted in Blog, Newsletter

President Trump has issued a multi-faceted executive order on healthcare aimed at reducing costs and increasing pricing transparency in the healthcare system and health insurance industry. The parts of his order that could affect benefits that are part of employer-sponsored plans include: Helping people with chronic conditions The order directs the Treasury Department to issue guidance that can help people with chronic conditions who are enrolled in high-deductible health plans (HDHPs) with attached health savings accounts. The guidance, which was issued in July, requires HDHP insurers to pay for a number of preventative services and medications with no copay or…
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Bill Would Nearly Double Permitted HSA Contributions

| posted in Blog

As employers shift more of the cost burden to employees, legislation in Congress would nearly double the amount workers can put into health savings accounts. Under H.R. 5445, employees enrolled in high-deductible plans and opting for single coverage could in 2017 contribute up to $6,500 to their HSAs, while those with family coverage could contribute up to $13,100. Under current law, the 2017 maximum HSA contributions are $3,400 for employees with single coverage and $6,750 for family coverage. The idea behind the measure is to let employees fund all of their out-of-pocket costs through HSA contributions. Premium costs though would…
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Consumer-driven Health Plans Confuse Enrollees

| posted in Blog

As more employers are moving their workers into consumer-driven health plans (CDHPs), a new study has found that many employees don’t understand how such plans and their moving parts work. The report found that there is widespread misunderstanding among enrollees in CDHPs about the health savings accounts (HSAs) or flexible spending accounts attached to those plans and health reimbursement arrangements (HRAs). This is an increasingly important issue that needs to be addressed by employers as CDHPs and reimbursement accounts quickly gain traction. The “Acclaris Consumer Education Survey” of health industry professionals found that: • 64.5% of health industry professionals rated…
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