Employers seek creative and effective support options for employee health, wellness, and financial needs, giving employees more benefit options than ever. Picking and choosing among them is somewhat like building a meal in a cafeteria line. This ability comes from the IRS’ Section 125, also known as the “Cafeteria Plan” provision.
Most people know the triple tax savings HSAs offer, including tax-free contributions, tax-free earnings, and tax-free withdrawals for qualified healthcare expenses. However, while HSAs primarily help reduce healthcare costs, they also have lesser-known values. So, what are the hidden benefits of an HSA? HSA Portability When you have an HSA,
Although popular in countries such as Canada, Lifestyle Spending Accounts (LSAs) are relatively new in the U.S. and attracting a lot of attention. So, what is an LSA? LSA Basics LSAs are employer-funded accounts that employees use to pay for products, services, and activities that help support employee well-being. Qualified
COBRA insurance may be a vital lifeline for American workers who experience a qualifying event resulting in loss of coverage. Check out our COBRA FAQs to learn more. What is COBRA? The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) is a federal law that deals with healthcare coverage cancellations
In addition to health insurance eligibility, family status changes can impact consumer-directed healthcare accounts. Here’s how mid-year status changes affect FSA and Dependent Care accounts. Can I change my health FSA contributions? Employees may choose FSA participation during open enrollment. This includes deciding on an annual contribution amount up to
Healthcare consumerism is a movement to refine the efficiency and affordability of healthcare services by changing how people prioritize their healthcare. Imagine a system where patients are more knowledgeable and active in purchasing healthcare services. Healthcare consumerism works to make this a reality. Healthcare Consumerism Basics At its core, healthcare
Healthcare spending accounts, such as Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs), help people pay for qualified medical expenses. They also provide more control over how and where to pay for those expenses. Some employees may have simultaneous HRA and HSA eligibility through their employer or when combined
The Internal Revenue Service (IRS) published the 2024 annual contribution limits for Health Savings Accounts (HSAs) on May 16. They also announced high deductible health plan (HDHP) minimum deductibles and out-of-pocket maximums for next year. 2024 HSA Contribution Limits For 2024, HSA owners will see a significant increase in the amount they
Employees who lose their jobs or have reduced work hours may lose their company-sponsored group health insurance. However, COBRA can provide temporary, continued coverage while pursuing a replacement. Although COBRA is not new, those who have never used it may not have a good understanding of how it works. COBRA
Health Savings Accounts (HSAs) help employees manage their healthcare costs while also planning for retirement. Account owners can access their balances tax-free to pay for eligible healthcare expenses and invest unused funds for growth over time. But did you know that account owners can also make a one-time transfer from
