Effective January 1, 2011, rules will change for using Flexible Spending Accounts (FSA’s), Health Reimbursement Arrangements (HRA’s), and Heath Savings Accounts (HSA’s) to purchase over-the-counter (OTC) drugs and medicines. After January 1st, funds from these accounts may no longer be used for OTC drugs and medicines (other than insulin) unless the employee has a prescription from a doctor or medical provider. Some examples of the OTC drugs and medicines affected by this new rule include: allergy & sinus medications, antibiotics, pain relief medicines, cough/cold/flu medicines, sleeping aids & sedatives, gastrointestinal aids, stomach remedies, and baby rash/ointments and creams. Click on this link to learn more.
The U.S. Government says letting young adults stay on their parents’ health insurance plan until they turn 26 will cost employers close to another 1% for company sponsored plans. This is one of the most anticipated changes to the 2010 Health Care Reform legislation. Employers should also be prepared for a flood of phone calls as a result of the estimated 1.2 million young people expected to sign up for this plan. Many insurers have already offered extended coverage for individual plans. This extended coverage will be required for group health plan renewals starting on or after Sept 23rd of this year.
Starting with the 2010 tax year, the new health care reform law gives a tax credit to qualified small employers who provide health benefits to their employees. Eligibility rules, credit amounts, and how to qualify are commonly asked questions from employers. Find out what this means for your business.
The Bill has now been signed into law by President Obama. The Senate must now pass a package of changes that will reconcile the differences between the Senate and House bills. Assuming those changes are worked out, here is how they will affect you.
Welcome to the official PBC Group, LLC Blog. We look forward to keeping you up to speed on the many changes in the world of Employee Benefits. As your proactive employee benefits consultant, we will post information, articles, and links that impact your business. We hope you find this site informational and useful. Subscribe to start receiving email updates today!