CalCPA ProtectPlus

Following is important information from ACS |BNY Mellon HSA Solution:

Protect our environment, go paperless. At ACS|BNY Mellon HSA Solution, we would like to do our part to protect the environment by reducing the amount of printed material we generate.

 If you are not already viewing your periodic HSA statement online; please “turn paper off” by following the four steps outlined below:

 Logon to your HSA Web site

• Select “Update Account Profile” on the left side of the screen
• Click on “Edit” under “Your Statement Delivery Option”
• Click on “Agree” to acknowledge and accept the terms

Beginning in September, any account holder receiving a paper HSA statement will be charged $0.75 each time one is generated.

A customer service enhancement for our account holders. Effective July 19, 2010, you will be able to log on to your HSA Web site or call the HSA Solution Contact Center and update your personal data (i.e., residential address, mailing address, e-mail address, and phone number). We will no longer accept personal data changes from another source.  We have changed the process to allow for direct owner­ship of personal information by the account owner.

HSA limits stay the same for 2011. For calendar year 2011, the maximum HSA contribution that can be made is $3,050 for employee-only coverage ($4,050 if you are age 55 or older and eligible to make catch-up contributions) and $6,150 for family coverage ($7,150 if you are age 55 or older and eligible to make catch-up contributions). The minimum deductible will stay at $1,200 for single coverage and $2,400 for family coverage. The maximum out-of-pocket employee expense, including deductibles, will stay at $5,950 for single coverage and $11,900 for family coverage. (IRS, 5/24/10)

Health care reform and HSAs. Outlined below are the health care reform changes with the most immediate impact on Health Savings Accounts:

• Amounts paid for over-the-counter drugs will no longer be qualified medical expenses eligible for reimbursement from an HAS unless the over-the-counter drug was prescribed by a doctor.  The prescription requirement only applies to over-the-counter drugs.     It does not apply to expenses for other over-the-counter items such as insulin and diabetic supplies, bandages, band-aids or contact lens supplies.  These items continue to be reimbursable from an HSA without a doctor’s prescription.  (Effective 1/1/2011)
• The penalty for reimbursements of nonqualified medical expenses from your HSA will increase from 10 to 20 percent. (Effective 1/1/2011)

NOTE: Do you have a dependent that is between the ages of 23 and 26? Parents who cover adult children via their employer’s high-deductible health plan option may be unable to use HSA funds to reimburse themselves on a tax-free basis for medical expenses incurred by those adult children.

Employer Eligibility
ProtectPlus is available to accounting firms and firms offering general financial services. Solo practitioners (a CPA practicing on his/her own with no other employees) are eligible to apply.

To be eligible and retain such eligibility, more than 50% of all the Employer’s owners (i.e., principals, proprietors, partners, shareholders or other owners) must be CPAs or Associate members of CalCPA in good standing.

If you are a CPA and not a member of CalCPA, see how you can join CalCPA here.

All employers deemed to be part of an affiliated group under Internal Revenue Code Sections 414 (b), (c), or (m) are considered to be a single employer. (continue reading…)

Tax-Savings Can Really Add Up To Lower Healthcare Costs

Times are tough. Medical costs are on the rise. But there’s something you can do right now to get more for your healthcare dollars. Simply sign up for a CalCPA ProtectPlus Health Savings Account (HSA) plan and save big on the services you already use. HSA plans are available to any CalCPA ProtectPlus member whose employer is offering any of our three High Deductible Health Plans (HDHP).

With these accounts, you deposit pre-tax dollars into your Health Savings Account and then use your HSA debit card to pay for eligible medical expenses for you and your dependents. You can use your HSA for expenses like office visits, prescriptions, and emergency services, plus eligible expenses NOT covered by your plan such as dental, vision, many over-the-counter drugs and long-term care.

Get full details on HSA plans. See HSA eligible plans.

Every year the IRS provides new inflation-adjusted limits for qualifying for health savings account (HSA) contributions, deductibles, and out-of-pocket maximums. For 2010 the adjustments are fairly consistent with previous years. Maximum HSA contributions will reset to $3,050 for individuals and $6,159 for families. Minimum deductibles for HSA-eligible insurance plans will be set at $1,200 for individuals, and $2,400 for families. Finally, out-of-pocket maximums for these policies will be set at $5,950 for individuals and $11,900 for families. The catch-up contribution allowance for those 55 and older will remain at $1,000, the same as 2009.

Meanwhile, the popularity of HSAs and their associated high deductible HSA eligible health plans continues to grow rapidly. Between January 2008 and January 2009, the number of people covered by such plans increased 31 percent to eight million. California led all other states with 854,000 enrollees.

ACS Announces ACS|Mellon HSA Solution Interest Rate Adjustment

The current economic climate and continued downward pressure on interest rates have made it necessary to decrease the interest rate we pay HSA account holders on the demand deposit checking account.

Effective July 1, 2009, the interest rate paid on our standard HSA product will be (APY) 0.100%.

While the reality of the current economic climate requires this action, we will continue to closely monitor interest rates and make responsive adjustments to our product.

This interest rate change will be reflected on the July HSA statements sent to all ACS|Mellon HSA Solution account holders in early August.

Responding to the growing popularity of Health Savings Account eligible medical insurance plans (commonly referred to as HSAs), the Group Insurance Trust (CPA ProtectPlus) has expanded its current offerings with a third such plan, Protect HSA $2,500.

With premiums approaching the lower end of ProtectPlus co-pay plans, the new plan offers significantly greater benefits than the two already established Protect HSA plans.

As with all HSA-eligible plans, Protect HSA$2,500 features a high annual deductible that must be satisfied before benefits are paid by the plan. For the new plan the deductible is $2,500 per individual and $5,000 per family.

Though not greatly different from HSA $2,850 in respect to the deductible, the difference in benefits is large indeed.

After the deductible is met HSA $2,500 provides 100 percent coverage for all in-network office visits, professional services, emergency and in-patient hospitalization, hospital and outpatient surgery, lab costs and more.

It also pays 70 percent of the negotiated fee for all these services when provided out-of-network. In contrast, HSA $1,500 and $2,850 pay 70 percent of negotiated fees for in-network services and 50 percent of negotiated fees out-of-network. (continue reading…)

Recap of first three.

1. You can’t open an HSA without subscribing to a high deductible healthcare plan (HDHP), but you can subscribe to an HDHP without opening an HSA.

2.Before deciding on an institution to act as trustee or custodian, research your investment options and the account fees.

3. As an employee, when comparing an HDHP with traditional copay plans, consider the amount your employer will contribute to your HSA.

4. Those over 65 who qualify for Medicare may not open an HSA, but there are several incentives for those in their 50s or early 60s to at least consider an HDHP/HSA option.

While,  for instance, there are limits on the amount of tax-deductible contributions that can be made to an HSA in any year, those over 55 may also make specified “catch up” contributions. Once you turn 65 and are covered by Medicare you may no longer make contributions, but you can continue to draw from your account tax-free for out-of-pocket health expenses.

In addition, you can use your account to pay Medicare premiums, deductibles, copays, and coinsurance under any part of Medicare. If you have retiree health benefits through your former employer, you can also use your account to pay for your share of retiree medical insurance premiums. You can also use your account to pay long-term care premiums, though you may not use HSA funds to purchase a “Medigap” policy.

5. California has recently extended state tax deductions to parallel federal exemptions.

This means that employee contributions to HSAs, and distributions made from these accounts to pay for medical-related expenses, are California income tax deductible. In addition,employer contributions will not be added to an employee’s California taxable income.

6. Finally, a word of caution for those who are shopping for an HDHP policy: while a policy may be attractive for its low premiums, be sure that it comes with a good preferred provider network.

If not, you can be hit with large bills for routine medical procedures, and because of the high deductibles, your out-of-pocket expenses can be very high indeed. In such instances, the advantages ofan HSA may evaporate.

Widely publicized before they were available, Health Savings Accounts (HSAs) are quickly becoming an accepted health insurance option.

We recently introduced a new HSA, Protect 2500, once you meet the plan deductible, the plan pays 100% of in-network, eligible expenses.

Consider these guidelines whether you’re interested in an HSA for yourself, an alternative plan for employees, or when consulting clients on how an HSA might serve them.

1. You can’t open an HSA without subscribing to a high deductible healthcare plan (HDHP), but you can subscribe to an HDHP without opening an HSA.

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 stipulated that HSAs were created to allow individuals to pay for qualified medical expenses with pre-tax dollars in conjunction with specially designed HDHPs. Getting HDHP coverage without opening an HSA is possible. However, keep in mind that this option fails to take advantage of HSA tax benefits while exposing subscribers to the risk of paying the very high deductibles out of ordinary savings should they need expensive medical treatment. (continue reading…)

Protect HSA plans are self-funded High Deductible Healthcare Policies (HDHPs) offered through the Group Insurance Trust of the California Society of CPAs. The Protect HSA plans, when paired with a Health Savings Account offered through a bank, brokerage or other financial institution, provides security against catastrophic medical expenses, while allowing you to set aside pre-tax dollars to pay for qualified medical expenses. Detailed information on HSAs: official government site.

As with the ProtectPlus copay plans, the Protect HSA plans have contracted with Anthem Blue Cross of California to use its comprehensive provider network and to process our claims. You will have the freedom to choose virtually any health care provider and no physician referral is required. It’s up to you whether you go in-network and receive a higher benefit (after your deductible is satisfied) or go out-of-network and pay more. However, when you choose participating network providers, you will take advantage of negotiated rates, which lowers out-of-pocket expenses.

For more on CPA ProtectPlus HSA Plans