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

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Category: 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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COVID-19: Recent Official Notices for Employer Benefit Plans

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Category: Cafeteria Plans, CDHC, Compliance and Regulatory, Flexible Spending, FSA,

Recently there have been multiple regulatory announcements regarding Section 125 Cafeteria Plans, Flexible Spending Accounts (FSAs), Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs). Please be mindful that not every announcement applies to every plan type, nor to all configurations of a given plan type.

 

Recent announcements include:

Notice or Announcement

Date Released

The CARES Act

3/27/2020

EBSA Disaster Relief Notice 2020-01

4/29/2020

IRS Notice 2020-29

5/12/2020

IRS Notice 2020-33

5/12/2020

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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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COVID-19: May 2020 Update from ABG

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Category: COBRA, Compliance and Regulatory,

On May 4, 2020 Internal Revenue Service (“IRS”) and Employee Benefits Security Administration (“EBSA”) issued a final ruling regarding the extension of certain COBRA timeframes during the COVID-19 National Emergency in its “Extension of Certain Timeframes for Employee Benefit Plans, Participants, and Beneficiaries Affected by the COVID-19 Outbreak” notice. The intent of this ruling is to provide relief that is immediately needed to preserve and protect the benefits or participants and beneficiaries in all employee benefit plans across the Unites States during the National Emergency.

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IRS and DOL Provide Deadline Relief

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Category: COBRA,

IRS and DOL Provide Relief for Participants and Plan Sponsors from Certain Time Deadlines Due to COVID-19 Pandemic

Yesterday, recognizing the impact of the COVID-19 Pandemic, the Internal Revenue Service and the Department of Labor released guidance that extends the period of time that a participant has in enrolling in coverage under a health plan, paying for COBRA continuation coverage, submitting claims for coverage and disputing denials of claims for benefits. The guidance also extends the period of time that a group health plan sponsor or administrator has to provide a COBRA election notice. Agency FAQs were also released related to the guidance. Essentially, the guidance provides that actions that must be taken with the time period from March 1, 2020 until 60 days after the time the federal government declares the COVID-19 emergency (referred to as the “Outbreak Period”) has ended will be disregarded . 

The guidance states that the following actions that are required to be taken during the Outbreak Period are extended until after the Outbreak Period ends:

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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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COVID-19 - Important Update

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Category: COBRA, Compliance and Regulatory, Health Care Reform, HRA,

As we continue to monitor developments and consider American Benefits Group’s response and contingency plans in the context of the coronavirus developments, our priority is the safety of our employees and ensuring our ability to continue to service our clients’ needs.

Our Critical Response Group is composed of leaders and subject matter experts across our business lines. This group is meeting daily to assess the impact across our business and in our communities, advise the executive management, develop and deploy actions.

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IRS Announces 2020 Adjustments

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Category: CDHC, Flexible Spending, IRS, Transit and Parking Section 132,

Today, the IRS announced Revenue Procedure 2019-44 which provides the 2020 cost-of-living increases for inflation for certain items. In 2020, the:

  • Annual Healthcare Flexible Spending Account (FSA) contribution limits will increase $50 from the current amount of $2,700 to $2,750

  • Monthly limit for Transit and Parking will increase $5 each from the current amount of $265 to $270

  • Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,150 to $5,250, and the maximum reimbursement amount will increase $150 for family coverage from the current amount of $10,450 to $10,600

As a reminder, the IRS announced 2020 health savings account (HSA) contributions limit increases. In 2020, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,500 to $3,550, and the family coverage contribution limit will increase $100 from the current $7,000 to $7,100.

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

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FSA Store = Notice on Fraudulent Email Attempt

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FSA store has made us aware that there's been a recent phishing attempt that tried to imitiat their emails. Find out more on their website https://email.fsastore.com/public/viewmessage/html/28402/jacsngk52mpi13qi7e7e8vjio1911/f47dabf70f64974471877ef93778df2a 

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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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New Jersey Commuter Law

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Category: Commuter, Compliance and Regulatory, Parking, Transit, Transit and Parking Section 132,

On Friday, March 1, 2019, New Jersey became the first state to adopt a commuter benefit ordinance with the passage of S.1567. https://www.njleg.state.nj.us/2018/Bills/S2000/1567_R1.PDF

 While some of the details regarding the implementation are still outstanding, there are a few things we do know.

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IRS Announces 2019 Adjustments

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Category: CDHC, Flexible Spending, IRS, Transit and Parking Section 132,

Today, the IRS announced Revenue Procedure 2018-57 which provides the 2019 cost-of-living increases for inflation for certain items. In 2019, the:

  • Annual healthcare flexible spending account (FSA) contribution limits will increase $50 from the current amount of $2,650 to $2,700
  • Monthly limit for transit and parking will increase $5 from the current amount of $260 to $265
  • Annual maximum reimbursement for a qualified small employer health reimbursement arrangement (QSEHRA) will increase $100 for individual coverage from the current amount of $5,050 to $5,150, and the maximum reimbursement amount will increase $200 for family coverage from the current amount of $10,250 to $10,450

As a reminder, on May 10, 2018, the IRS announced 2019 health savings account (HSA) contributions limit increases. In 2019, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,450 to $3,500, and the family coverage contribution limit will increase $100 from the current $6,900 to $7,000.

If you have any questions, please contact your Service Delivery Manager for more information. 

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ABG Presents Donation to Safe Passage

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The senior management team at American Benefits Group was pleased to present this contribution on July 26th, to Sarah Smith, Director of Development, Safe Passage, an organization dedicated to the prevention and protection from domestic violence. In recognition of ABG being recognized as the 2018 Alegeus APEX winner for Operational Excellence and Efficiency, we were honored to select Safe Passage as our charitable recipient. 

https://safepass.org/about/

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2018 APEX award for Operational Efficiency and Excellence from Alegeus leadership

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Category: Cafeteria Plans, CDHC, COBRA,

American Benefits Group (ABG) of Northampton MA, a leading national benefits service and solution provider in the health benefits industry has been recognized by healthcare benefits payments giant Alegeus as the 2018 APEX Award winner for Operational Efficiency and Excellence. The award was presented at the Alegeus National Conference on May 16th in Orlando Florida.

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