Health & Welfare Plans Newsletter

March 8, 2018

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Jobs

Employee Benefits - Retirement Plans Manager
Boulay
in MN

Litigation Associate
Trucker Huss APC
in CA

Health & Welfare Associate
Trucker Huss APC
in CA

Loans and Distribution Support
American Retirement Plan Services, LLC
in MD

Team Leader / Manager Client Services
Newport Group
in NC

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Webcasts, Conferences

Workplace Violence Prevention, Response, and Crisis Management for Small to Large Global Companies
March 27, 2018 in TX
Worldwide Employee Benefits Network [WEB] - Dallas Chapter

New Tax Bill and Its Impact on Employee Benefits
April 9, 2018 WEBCAST
Lorman Education Services

Legislative Update: Health & Welfare Benefit Plans
May 22, 2018 WEBCAST
TRI-AD

Compensation ? Part 2: A Deep Dive into the New Section 199A
April 17, 2018 WEBCAST
NIPA [National Institute of Pension Administrators]

?See 173 Upcoming Webcasts and Conferences

?See 1369 Recorded Webcasts


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[Guidance Overview]

2018 HSA Family Contribution Limit Reduced by $50
"A number of organizations and trade groups have approached the IRS to discuss transition relief or other solutions that would minimize disruption and unexpected administrative burdens imposed on employers and individuals.... [E]mployers should act now to identify employees who, when combined with any company HSA contribution, elected to contribute more than $6,850 to an HSA, and should reach out to relevant vendors to discuss the process for making changes to employee HSA contribution elections."
Winston & Strawn LLP

[Advert.]

SALGBA National Conference for public sector benefit professional

Sponsored by SALGBA [State and Local Government Benefits Association]

The SALGBA National Conference will be held April 29 ? May 2, 2018 in Jacksonville, FL. More information please visit http://www.salgba.org .


[Guidance Overview]

IRS Issues Immediately Effective HSA Guidance
"To avoid penalties, any employees who already contributed the maximum $6,900 prior to March 5 will need to withdraw their excess contributions (including interest on the excess contributions) as taxable income. It does not appear that employers need to treat the excess contributions as taxable wages for W-2 purposes, however, because the employer presumably had a reasonable belief at the time of the contribution (prior to March 5) that the contribution was excludable from wages."
Groom Law Group

[Guidance Overview]

IRS Reduces 2018 HSA Limit for Family Coverage
"The downward adjustment of the HSA limit for individuals enrolled in family coverage presents administrative issues for employers and HSA administrators as many HSA enrollees may have already maxed out their family contributions. This is particularly challenging if an individual had contributed the IRS-approved $6,900 maximum amount and used all of the funds for permitted medical expenses[.]"
Proskauer's Employee Benefits & Executive Compensation Blog

Employer Tax Credit for Paid Family and Medical Leave
"The applicable percentage starts at 12.5% of wages paid to a qualifying employee during the period in which the employee is on family and medical leave, provided that wages paid under the program are at least 50% of the wages normally paid to the employee. The 12.5% applicable percentage increases by .25% for each percentage point by which the rate of wages paid to the employee on leave exceeds 50% of the employee's normal wages. The applicable percentage is capped at 25%."
Schneider Downs

Prescription Drug Spending in the U.S.: An Actuarial Perspective (PDF)
12 pages. "In 2016, the U.S. spent $3,337 billion, or 17.9 percent of the gross domestic product (GDP), on national health expenditures, of which $329 billion was spent on prescription drugs.... [This issue brief] highlight[s] prescription drug issues present in our health care system, including cost drivers, the effect on various stakeholders, and possible approaches that might help address the health care cost growth associated with prescription drugs."
Prescription Drug Work Group, American Academy of Actuaries

[Advert.]

Now is a great time to join Worldwide Employee Benefits Network (WEB)

Sponsored by WEB - Worldwide Employee Benefits Network

Worldwide Employee Benefits Network represents more than 30 areas of expertise within the Benefits Industry.
Join WEB today at www.webnetwork.org .


Cigna's Purchase of Express Scripts Intensifies PBM Market Shakeup
"Cigna plans to buy Express Scripts for about $52 billion and take on $15 billion in the PBM's debt. The deal is designed to give Cigna a competitive advantage -- or at least a fighting chance -- amid a series of big moves in the PBM market by heavy-hitters looking to rein in rising costs as the healthcare industry's landscape keeps shifting."
HealthLeaders Media

UnitedHealthcare Reports Positive Shift Towards Value-Based Care Plans
"UnitedHealthcare's annual report evaluated value-based programs that include 110,000 physicians and 1100 hospitals that treat patients in UnitedHealthcare employer-sponsored, individual, Medicare, and Medicaid products. The payer found that accountable care organizations (ACOs) had a greater effect on improving health and lowering costs than non-ACOs, with hospital admission rates being 17% lower for ACOs compared with non-ACOs."
American Journal of Managed Care

Credit Union HSA Update, as of December 31, 2017
"HSA deposits held at credit unions totaled $1.47 billion as of 12/31/17, up 6.2% year-over-year.... [T]he average HSA balance at a credit union is $2,546 as of 12/31/17, up 10.6% year-over-year.... There are 843 credit unions holding HSA deposits as of 12/31/17 (15% of credit unions), up from 832 credit unions at the end of 2016."
Devenir

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BenefitsLink Health & Welfare Plans Newsletter, ISSN no. 1536-9595. Copyright 2018 BenefitsLink.com, Inc. All materials contained in this newsletter are protected by United States copyright law and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of BenefitsLink.com, Inc., or in the case of third party materials, the owner of those materials. You may not alter or remove any trademark, copyright or other notices from copies of the content.

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