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IRS Releases New Guidance on Cafeteria Plans and ICHRAs

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Category: Flexible Spending, HRA, HSA, IRS, Section 125 Plans,

On May 12th, the IRS released Notice 2020-29 and 2020-33. These notices provided new relaxed rules for 2020 for making elections under Cafeteria plans, using amounts during a grace period or carryover period changes to the method determining the carryover amounts under Health FSAs and clarifying which premiums can be reimbursed under ICHRAs. The following is an explanation of both notices.

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The president signed The CARES Act into law on Friday March 27th

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Category: Cafeteria Plans, FSA, Health Care Reform, HRA, HSA,

This law has many important components, one of which permanently reinstates coverage of Over the Counter (OTC) drugs and medicines as items eligible for reimbursement under Code 213(d) expenses in FSA, HRA, and HSA plans. With this law, the drugs and medicines will no longer require participants to have a prescription to prove eligibility. In addition to the reinstatement of OTC eligibility, the bill expands the eligible OTC definition to include menstrual care products (i.e. tampons, pads, etc.).

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American Benefits Group - COVID-19 - Important Update

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Category: Commuter, Compliance and Regulatory, Flexible Spending, FSA, HRA, HSA,

COVID-19 Update - Please forward this communication to others in your organization who may need it.

Reminder - We request you help us in an effort to reduce US mail wherever possible

  • Manual Claim Reimbursement: these can be submitted electronically either by uploading information through the participant portal, using the camera feature with our mobile application or faxing to our secure fax viewer.
  • Monthly Administrative Service Fee Invoices Payments: communications have been sent to all AP contacts for each organization. Within the communication, we identify alternative methods of payment.
  • COBRA and Direct Billing: If you are currently receiving your remittances by check we ask that you sign up for ACH. Please reach out to accounting@amben.com.


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Bob Cummings Reelected as President of NAPBA

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Category: Cafeteria Plans, CDHC, COBRA, Compliance and Regulatory, Flexible Spending, Health Savings, HRA, HSA,

American Benefits Group CEO and Founder Bob Cummings Reelected as President of NAPBA May 28th 2019 - Bob Cummings has been reelected to serve as President of The National Association of Professional Benefits Administrators (NAPBA). A NAPBA Trustee since 2007, Cummings was first elected NAPBA president in 2015, and has been an instrumental force in the emergence of the Consumer Directed HealthCare industry over the last 20 years, orchestrating the growth of NAPBA as the primary compliance standards and best practice organization for third party employee benefits administrators serving the consumer directed healthcare industry.

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HSA Family Maximum Contribution for 2018 to Remain at $6,900

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Category: Cafeteria Plans, Compliance and Regulatory, Health Savings, HSA,

On April 26, 2018, the IRS announced (through Rev. Proc. 2018-27) that the 2018 HSA maximum family contribution is reverting back to the original $6,900. As reported in March the IRS had previously announced a decreased limit of $6,850 (Rev. Proc. 2018-18).

In restating the original limit of $6,900, the IRS shared many reasons for the decision, including taxpayer complaints that the $50 limit reduction imposed “numerous unanticipated administrative and financial burdens” for those that had already maxed out their contributions before the reduction was announced, and administrators who had to modify their systems to reflect the reduction. Most interestingly, some stakeholders had pointed out the fact that Section 223 of the IRC requires the IRS to publish the annual inflation adjustments by June 1 of the preceding calendar year.

As a result of the new announcement, HSA eligible individuals with family coverage may now contribute up to $6,900 for 2018. Employers wanting to take advantage of the increased limit will need to make the appropriate adjustments in their payroll and benefits administration systems, if they had previously change the systems to reflect the $6,850 limit.

A further complication comes with the new announcement: Some employees had already maxed out the $6,900 before the March 5, 2018, reduction announcement. To help the employees avoid the 6 percent excise penalty tax for excess contributions, the employers already completed the corrective action of distributing the excess $50. Now, with the limit back at $6,900, that $50 is no longer considered an excess contribution. If the $50 was associated with employer contributions or employee pretax contributions, it would now be considered a nonqualified distribution, subject to a 20 percent excise penalty tax (plus income tax). To avoid the tax, the employees will need to work with the employer and HSA bank/trustee to repay the $50 to the HSA. The repayment will need to take place by April 15, 2019. Again, this last complication only applies to those employees who maxed out their contribution prior to March 5, 2018, due to employer or employee pretax contributions and whose employers had already refunded the excess $50 to them. 

Rev. Proc. 2018-27 »

IRS Announces Change to 2018 Family HSA Contribution Limit

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Category: Cafeteria Plans, Compliance and Regulatory, HSA, IRS,

On March 5, 2018, the IRS released Rev. Proc. 2018-18 (as part of Bulletin 2018-10). Due to changes made in the Tax Cuts and Jobs Act (2017 tax reform), certain adjustments needed to be made to inflation amounts. One of those adjustments is to the annual family contribution for HSA's in 2018. The family max contribution is decreased from $6,900 to $6,850. The single contribution limit remains unchanged at $3,450.

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American Benefits Group is Featured in the current edition of BusinessWest

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Category: CDHC, COBRA, Flexible Spending, FSA, Health Reimbursement, Health Reimbursement Arrangements, Health Savings, HRA, HSA, Section 125 Plans, Transit and Parking Section 132,

When Bob Cummings started out in benefits administration, health-insurance co-pays were $3, premiums were well under $100 a month, his office ran on MS-DOS, and it issued paper statements. Much has changed since then, obviously, but not his company’s success formula, based on personalization, creativity, knowledge of a complex and ever-changing subject, and what American Benefits Group prefers to call ‘enabling technology.’
George O'Brien on October 5, 2015 in BusinessWest

See the entire American Benefits Group story in the October 5th Issue of BusinessWest and BusinessWest.com 

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Defined Contribution: Finding Certainty in Employer Benefits

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Category: Health Savings, HSA,

How employers can stay competitive… and retain talent

“Uncertainty” is not likely to warm the hearts of many CFOs and Finance VPs, and perhaps no aspect of corporate administration has a higher level of uncertainty than healthcare and benefits. As with pension plans, the administration of defined benefit health plans is best suited to those with a defiantly optimistic view of business trends or to companies certain that they will experience year-over-year gains to fund defined benefits indefinitely.

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Introducing the WealthCare Integrated HSA Solution

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Category: Health Savings, HSA,

Health Savings Accounts are an integral component of the Consumer Directed HealthCare strategy. As HSAs gain mainstream acceptance in the marketplace it’s imperative that employers adopt an HSA solution that integrates with their core benefits offerings. Maintaining separation between the HSA and the underlying HDHP health plan will help avoid unnecessary disruption when the inevitable change of medical carrier occurs.

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ObamaCare signals big role for Health Savings Accounts

Category: CDHC, Compliance and Regulatory, Health Care Reform, Health Savings, Health Savings, HSA, IRS, PPACA, Taxes,

contributed by: Dan Perrin, Executive Director of the HSA Coalition

Despite getting clobbered in the fiscal cliff negotiations, Republicans have something to celebrate this year - the survival of health savings accounts, or HSAs. They had feared

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Consumer Engagement Is The New Healthcare Reality

Category: Cafeteria Plans, CDHC, Flexible Spending, FSA, Health Care Reform, Health Reimbursement, Health Savings, HRA, HSA, PPACA, Section 125 Plans,

Every so often it seems another round of surveys is released demonstrating the strong, continual growth of the consumer-directed health care (CDHC) market and the accompanying behavioral shift in how Americans approach buying health care. This month has

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So you've got an HSA, now what do you do with it?

Category: CDHC, Health Care Reform, Health Savings, HSA, IRS,

By Beth Pinsker Gladstone
NEW YORK | Thu Oct 11, 2012 9:30am EDT

NEW YORK (Reuters) - If your company tells you it's replacing your health insurance with a high deductible plan paired with a health savings account - or adding that option to your

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Important Information Regarding the PPACA Summary of Benefits and Coverage Requirement

Category: Cafeteria Plans, CDHC, Compliance and Regulatory, DOL, ERISA, Flexible Spending, FSA, Health Care Reform, Health Reimbursement, HRA, HSA, IRS, PPACA,

Group health plans, which include HRAs, MERPs, and non-excepted FSAs, must provide a Summary of Benefits and Coverage (SBC) for all eligible plans to all eligible individuals, participants and beneficiaries.

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2013 HSA Contribution Limits Released

Category: Health Savings, HSA,

IRS has just issued Revenue Procedure 2012-26, which provides the 2013 cost-of-living contribution and coverage adjustments for HSAs, as required under Code Section 223(g). Most contribution limits and the out-of-pocket amounts have been increased for 2013.

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