The Health Savings Account (HSA) Council is an organization of banks, insurers and technology leaders committed to increasing the adoption velocity of health savings accounts in the United States. The HSA Council represents its members before Congress, the White House and U.S. Courts in order to preserve the ability of Americans to pay for healthcare using an HSA.
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HSA News Highlights
How will HSA plans be Impacted by the Cadillac Tax?
The HSA Council and HSA Consulting Services have released a study on the effect of the ACA’s Cadillac Tax on HSA plans and contributions. The analysis found that regulatory uncertainty is causing some employers to eliminate payroll contributions to HSAs in order to avoid incurring excise tax liability, even though many HSA-qualified plans will likely avoid the tax for years. In order to preserve the availability of HSAs, at a minimum employee contributions need to be excluded from the calculation of the excise tax. Read the White Paper
. Read the press release.
HSA Council Cadillac Tax Comment Letter to IRS
In response to the IRS released Notice 2015-16, which states that the total dollars spent by an employer – premium and contributions to the HSA, even if those contributions are from the employee and merely facilitated by the employer – are counted towards the threshold for the excise tax, the HSA Council submitted a comment letter detailing why employee contributions should be excluded from the calculation. Read the Letter.
IRS Issues 2016 HSA Contribution Limits
In Revenue Procedure 2015-20
, issued May 18, 2015, the IRS provided the inflation-adjusted HSA contribution and HDHP minimum deductible and out-of-pocket limits, effective for calendar year 2016. HSA contribution limit for individual: $3,350 and for family: $6,750. HDHP minimum deductibles for individual: $1,300 and for family: $2,600. HDHP maximum out-of-pocket for individual: $6,550 and for family: $13,100.
Department of Labor Fiduciary Standard Proposed Rule
The DOL requested comments on their Conflicts of Interest Proposed Rule
. Comments Due July 21, 2015. From the Preamble, “The Department notes that these [HSA] accounts are given tax preferences as are IRAs. Further, some of the accounts, such as HSAs, can be used as long term savings accounts for retiree health care expenses...Accordingly, these accounts are included in the scope of covered plans in paragraph (f)(2) of the new proposal. However, the Department solicits specific comment as to whether it is appropriate to cover and treat these plans under the proposed regulation in a manner similar to IRAs as to both coverage and applicable carve-outs.”
The HSA Council is dedicated to advancing policies that preserve and expand banks’ ability to offer Health Savings Accounts. Its members include financial institutions, insurers and their technology partners.