By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: BREAKING: New Rules on HSAs
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > News > BREAKING: New Rules on HSAs
NewsPolicy & Law

BREAKING: New Rules on HSAs

JohnCGoodman
JohnCGoodman
Share
3 Min Read
SHARE

HHS has issued a “guidance bulletin” which states how they intend to define the minimum “actuarial value” that health plans must meet starting in 2014. If a plan does not meet the minimum actuarial value, it cannot be sold in the individual or small group markets. Many advocates of HSAs and other consumer-driven plans have hoped that HHS’ definition of “actuarial value” would not preclude HSA-qualified insurance plans from being offered in the new state insurance exchanges.

HHS has issued a “guidance bulletin” which states how they intend to define the minimum “actuarial value” that health plans must meet starting in 2014. If a plan does not meet the minimum actuarial value, it cannot be sold in the individual or small group markets. Many advocates of HSAs and other consumer-driven plans have hoped that HHS’ definition of “actuarial value” would not preclude HSA-qualified insurance plans from being offered in the new state insurance exchanges. The guidance bulletin is a mixed bag for HSAs. On the one hand, HHS says it will allow employers to include contributions they make to employees’ HSAs (and HRAs) when determining the actuarial value of the plans they offer. This will help high deductible plans that make people eligible for HSAs qualify as “Bronze” and “Silver” plans.

But the bulletin (and regulations to come) need to go further. More below the fold.

First, the bulletin does not appear to allow HSA contributions made by employees via payroll deduction to be included in the determination of a plan’s actuarial value. This is unfortunate because these contributions are treated — for tax purposes — as “employer contributions” and are not taxed as wages subject to income and payroll taxes (i.e., “pre-tax”).

More Read

How is Gaming Changing the Landscape in Health Care? Part 4 | Barbara Ficarra, RN, BSN, MPA
Western Medicine vs. Alternative Medicine in India
Stanford Disaster Relief Program – Video
Unintended Consequences of the ACA for Small Businesses
Medicaid Expansion: How Does It Affect You?

Second, the bulletin clearly states that HHS does not intend to include HSA contributions made by individuals that purchase insurance policies on their own (i.e., not through their employer) in the actuarial value of plans sold in the individual market. This will make it much more difficult for high deductible plans to meet the minimum actuarial value standard of 60 percent. If they can’t, these plans will either not be available, or these plans will have to raise their values by covering additional benefit expenses. This in turns means the premiums will have to be increased to cover the additional expenses, meaning HSA plans will not be as affordable as they are today.

    

TAGGED:health savings accountHSA
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

Remote Monitoring touchpoints
Remote Monitoring Touchpoints Patients Will Actually Follow
Technology
October 9, 2025
dental care
Importance of Good Dental Care for Health and Confidence
Dental health Specialties
October 2, 2025
AI in Healthcare
AI in Healthcare: Technology is Transforming the Global Landscape
Global Healthcare Policy & Law Technology
October 1, 2025
Choosing the Right Swimwear for Health and Safety
News
September 30, 2025

You Might also Like

Lab Tests in Health Risk Assessments Help Spot Diabetes, High Cholesterol and Kidney Disease (transcript)

February 18, 2012
can AI protect healthcare workers
Artificial IntelligenceCovid-19eHealthHealth careMobile HealthTechnology

How Can AI Protect Healthcare Workers From COVID-19 Transmission?

October 27, 2020
embryo transportation
News

Embryo Transportation Revolutionizes Reproductive Medicine

October 21, 2023

Over $5 Billion in Medical Technology Financing in 2011

December 31, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?