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We're here to help during COVID-19. Visit our guide for information relating to the coronavirus and your accounts.

  • News and Regulatory Updates
    2021 Limits for HDHPs and HSA Contributions Announced - 5/22/2020
    The IRS announced the following 2021 limits for high deductible health plans (HDHPs) and health savings accounts (HSAs).

    In 2021, individual HSA contribution limits will rise to $3,600; the family HSA contribution limit will rise to $7,200.

    The HDHP minimum deductible limit for individual coverage will stay the same in 2021 at $1,400, with family coverage remaining at $2,800. Additionally, the HDHP maximum out-of-pocket expenses will change under this provision. For individuals, it changes to $7,000 and for families, $14,000.

    These limits become effective January 1, 2021.
    CARES Act Expands Eligible Expenses to Include OTC and Feminine Hygiene Products - 3/27/2020
    The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on Friday, March 27th. One component of the law was an expansion of products eligible for reimbursement from health savings accounts (HSAs) and medical flexible spending accounts (FSAs).

    Changes include the addition of over-the-counter (OTC) drugs and medicines, which previously were only eligible for reimbursement with a prescription. Additionally, feminine hygiene products such as tampons, pads, liners, cups, and sponges are now eligible as well. Members may use an HSA or FSA to purchase those items, or file reimbursement claims. These are permanent changes.

    The CARES Act also addressed telehealth accessibility. We encourage those interested in telehealth to check with your health plan provider to see what your coverage is.

    For more information on the COVID-19 pandemic and the effect on spending accounts, visit our COVID-19 FAQ guide.
    IRS Extends HSA Contribution Deadline to July 15, 2020 - 3/20/2020
    On March 20, in response to the COVID-19 pandemic, IRS Notice 2020-17 extended the federal tax filing deadline by three months to July 15, 2020. Included with that, health savings account (HSA) holders now have until July 15 to make contributions to their HSA and count toward their 2019 contribution totals.

    The 2019 maximum HSA contributions are $3,500 for those with individual plans and $7,000 for those with family plans. If the member is 55 years old or older, the member can contribute an additional $1,000 toward their HSA for either an individual or family plan.

    For more information on the COVID-19 pandemic and the effect on spending accounts, visit our COVID-19 FAQ guide.
    IRS Allows HDHP Compatibility With No Cost for COVID-19 Plan Coverage - 3/12/2020
    On Wednesday, March 11, the IRS released Notice 2020-15 that states high deductible health plan (HDHP) participants will not lose eligibility if their health plan provides testing and treatment of the coronavirus (COVID-19) at no cost or with a deductible below the minimum HDHP deductible.

    The Notice is in response to nationwide preparation of COVID-19, including many health plans announcing coverage for testing and treatment.

    More information about this Notice can be found on the IRS website.
    What the Cadillac Tax Repeal Means for Employers - 12/20/2019
    In December, 2019, President Trump signed spending legislation that will repeal of an excise tax on high-cost health plans, known as the Cadillac Tax. The Cadillac Tax, which was scheduled to take effect in 2022, would have imposed a 40 percent excise tax on employer health plans, deemed by many to be too generous.

    Are you curious what this could mean for you and your employees? At Further, we have been working hard to bring awareness to this tax and advocate for the repeal on behalf of our partners and clients. With the Cadillac Tax repeal, effective December 21, 2019, employees will continue to have access to their health spending and savings accounts that they rely on to pay for care today, and employers can continue to offer great health benefits without the worry of potential taxes.

    At Further, our mission is to provide resources and tools to our members that empower them to spend every day wisely. There are many online sources that provide more background on this tax, including information from the National Association of Health Underwriters and the Tax Policy Center.
    IRS Releases 2020 FSA and TRA Limits - 11/7/2019
    Issued Wednesday November 6, 2019, the IRS has raised the Flexible Spending Account (FSA) limit to $2,750 for 2020. Additionally, Transportation Reimbursement Account (TRA) expense limits for parking and transit have been set at $270/month.

    For groups that already set their contribution limits to the 2019 amount ($2,700), Further will automatically update that amount to the new 2020 limit of $2,750 unless notified otherwise within the next 30 days.
    New California law requires FSA employers to notify employees of withdrawal deadlines - 10/22/2019
    California has enacted a law that requires employers with flexible spending accounts (which includes health FSAs, dependent care or adoption assistance FSAs) to notify account participants of any deadline(s) to withdraw funds before the end of the plan year.

    The law will go into effect on January 1, 2020.

    The law does not give insight into when the required notices are to be provided but notes the notice must be provided in two different forms, one of which may be electronic. Permitted forms of notice include (but are not limited to) email, telephone, text message, postal mail or an in-person notification.

    The Employee Retirement Income Security Act (ERISA) likely preempts the law as applied to health FSAs that are under ERISA. DCAPs and adoption assistance FSAs are rarely subject to ERISA, nor are health FSAs that are governmental or church plans; the law is potentially applicable to these programs. Groups are advised to work with benefit counsel to determine if compliance is required.

    More information on this new law can be found on the California Legislative Information site here.

    If you have additional questions about these changes or impacts, please contact a Further representative.
    On May 28, 2019, the IRS announced the following 2020 limits for high deductible health plans (HDHPs) and health savings accounts (HSAs).

    In 2020, individual HSA contribution limits will rise to $3,550; the family HSA contribution limit will rise to $7,100.

    The HDHP minimum deductible limit for individual coverage will change in 2020 to $1,400, with family coverage changing to $2,800. Additionally, the HDHP maximum out-of-pocket expenses will change under this provision. For individuals, it changes to $6,900 and for families, $13,800.

    These limits become effective January 1, 2020.