American Benefits Group (ABG) Navigating the Road to Consumer Directed Healthcare 2.0

CDHC COBRA Flexible Spending FSA Health Reimbursement Health Reimbursement Arrangements Health Savings HSA Transit and Parking Section 132

American Benefits Group (ABG) Navigating the Road to Consumer Directed Healthcare 2.0

The rapid adoption of consumer-directed health plans and accounts is a megatrend. In 2021 over 80 percent of U.S. employers offer a High Deductible Health Plan (HDHP) with a pre-tax consumer spending account or an HSA. According to Employee Benefit Research Institute (EBRI), the average industry-wide Health Savings Account (HSA) balance is about $2,100, while an average couple will require more than $285,000 in savings at retirement age to cover their likely out-of-pocket healthcare costs. Moreover, only 30 percent of health savings account holders fall in the ‘saver’ category, carrying account balances from year to year. These statistics highlight the need for better education, tools, and resources to help consumers better manage the financial responsibility for their current and future healthcare costs.

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American Benefits Group (ABG) Upping the Benefits Administration Game

CDHC COBRA Flexible Spending FSA Health Reimbursement Health Reimbursement Arrangements Health Savings HSA Transit and Parking Section 132

American Benefits Group (ABG) Upping the Benefits Administration Game 

In recent years, the US’ employee benefits landscape has rapidly evolved owing to factors such as escalating healthcare costs, changes in employment and benefits laws, and new initiatives and options in healthcare benefits. As employers continue to explore various ways to manage the costs and strategic design of their health benefits programs, integrated consumer-driven accounts such as Healthcare FSA, Health Savings Accounts (HSAs), and Health Reimbursement Arrangements (HRAs) play an instrumental role to empower participants with the tools they need to manage their health care spending and out of pocket costs. Delivering comprehensive tools and guidance to manage these accounts in one place with access real time healthcare cost and quality assessment tools and data is a responsibility that Massachusetts-based American Benefits Group (ABG) take very seriously. 

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No Changes to Health FSA Maximum Limit the limit remains at $2,750 for 2021

Cafeteria Plans CDHC Flexible Spending FSA Health Savings Transit and Parking Section 132

The IRS announced Revenue Procedure 2020-45 which provides the 2021 cost-of-living increases for inflation for certain items. In 2021, the:

  • Annual Healthcare Flexible Spending Account (FSA) contribution limits will not increase they will remain at the 2020 amount of $2,750
  • Monthly limit for Transit and Parking will not increase they will remain at the 2020 amount of $270 per benefit
  • Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $50 for individual coverage from the current amount of $5,250 to $5,300 and the maximum reimbursement amount will increase $100 for family coverage from the current amount of $10,600 to $10,700

As a reminder, the IRS announced 2021 Health Savings Account (HSA) contributions limit increases earlier this year. In 2021, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,550 to $3,600, and the family coverage contribution limit will increase $100 from the current $7,100 to $7,200. 

 

Please note that this email has been sent to the Company Plan Administrator and Broker Contacts, please share with others in your organization.

If you have any questions, please contact American Benefits Group for more information.

The IRS announced Revenue Procedure 2020-45 which provides the 2021 cost-of-living increases for inflation for certain items. In 2021, the:

  • Annual Healthcare Flexible Spending Account (FSA) contribution limits will not increase they will remain at the 2020 amount of $2,750
  • Monthly limit for Transit and Parking will not increase they will remain at the 2020 amount of $270 per benefit
  • Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $50 for individual coverage from the current amount of $5,250 to $5,300 and the maximum reimbursement amount will increase $100 for family coverage from the current amount of $10,600 to $10,700

As a reminder, the IRS announced 2021 Health Savings Account (HSA) contributions limit increases earlier this year. In 2021, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,550 to $3,600, and the family coverage contribution limit will increase $100 from the current $7,100 to $7,200. 

Please note that this email has been sent to the Company Plan Administrator and Broker Contacts, please share with others in your organization.

If you have any questions, please contact American Benefits Group for more information.

 

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