If you’re an employer or benefits administrator, part of your job during open enrollment is to equip employees with the information they need to make the best decision about their healthcare benefits. This year is no exception.
IRS ANNOUNCES ADJUSTMENTS FOR 2020
Today, November 6, 2019, the IRS released a statement announcing the Health Flexible Spending Account (FSA) and Qualified Parking and Transportation Account election limits for any plan years beginning in 2020.
Overwhelmed by a dizzying string of options and acronyms, some Americans are overlooking their best options for health coverage simply because they’re confused by the terminology. Especially for Millennials and Gen Z, just graduating and launching careers, the choice for health coverage must be made quickly, often amidst a barrage of employer-supplied documents, with little time to research. Unfortunately, the plans that might help them the most are the easiest to overlook. But regardless of age or experience, many consumers don’t realize that HDHPs can lead to monthly savings, that HSAs are portable and that FSAs can have rollover options that avoid the use-it-or-lose-it penalty associated with the accounts. In fact, many don’t know what these acronyms stand for at all.
As temperatures drop and the fall season comes to an end, stress spikes in HR departments all over the country—that’s because it’s open enrollment season. Open enrollment is a window during which individuals and employees may add or drop their health insurance, or make changes to their coverage. The 2020 open enrollment period runs through Saturday, December 15, 2019, and if your employees don’t act by then, they can’t get 2020 coverage unless they qualify for a special enrollment period. Keep in mind that for employer-sponsored coverage, the open enrollment period is set by the employer, so be sure to clearly communicate these dates to your employees. To make a better impact on your employees this year and drive engagement to new levels, here are a few suggestions on how to innovate your strategy.
When it comes to paying for healthcare costs—both now and in the future—health savings accounts (HSAs) are among the most powerful tools available to consumers.
In preparation for HSA Day, we're counting the reasons HSAs are beneficial to both employers and employees.
It’s no secret that health savings accounts (HSAs) are widely and often woefully misunderstood. This communication breakdown has manifested itself in misconceptions even among financial advisors—a cohort that many Americans entrust with helping them make critical decisions about their financial futures.
A HSA is a better retirement savings vehicle than a 401(k), but not all advisors are aware of this, nor that contributions to HSAs aren’t subject to federal income taxes; earnings from interest and investments are tax-free; and distributions from a HSA to pay for qualified medical expenses are tax-free.
“A real opportunity exists for financial advisors to play a major role in educating business owners about the benefits of health savings accounts for both their business and their employees,” said Kristi Rodriguez, leader of the Nationwide Retirement Institute.
HSA vs 401(k)
If your company has decided to offer a high deductible health plan, don’t worry, you are not alone. Recent studies show that an increasing number of employers have elected to offer high deductible health plans (HDHP) either to completely replace or be offered in conjunction with a more traditional Preferred Provider Organization (PPO) plan or Health Maintenance Organization (HMO) plan. When sponsoring a HDHP, employers typically offer their employees the ability to contribute to a Health Savings Account (HSA) to help offset the increased deductible associated with the HDHP. In 2017, 19 percent of all workers were enrolled in
As consumer-driven benefits continue to rise in the market, so the options for benefit administrators continue to expand for employers. Carriers, banks, HR software companies—it seems that more and more providers are adding FSA and HSA administration to their list of services. With so many choices, it can be difficult to decide who to trust with your pre-tax benefits, but in this dynamic, complex benefit world, it’s more important than ever to have a provider that offers stability, compliance expertise, security, and personalization.