WASHINGTON--(BUSINESS WIRE)--ECFC, the leading nonprofit organization promoting choice in benefit solutions, applauds the report from the U.S. Departments of the Treasury, Health and Human Services (HHS), and Labor (DOL) regarding reforms for the use of health savings accounts (HSAs) and health reimbursement arrangements (HRAs).
Called “Reforming America’s Healthcare System Through Choice and Competition,” the DOL, Treasury Department, and the HHS report outlines several legislative changes that could be made to increase the use of HSAs by:
- Allowing innovative insurance products (such as those that provide payment for generic drugs below the deductible or fixed fee payments for primary care) to be coupled with HSAs;
- Allowing individuals enrolled in a health insurance plan with a 70 percent actuarial value (AV), or below, to contribute to an HSA; and
- Raising the contribution limits to HSAs.
In addition, the report suggests that there are regulatory changes that could be made to HSAs, specifically in an expansion of what would be considered preventive care that could be paid by an HSA-compliant high deductible health plan.
The report also discusses the proposed regulations issued by the DOL, Treasury Department, and the HHS in October 2018 which will provide additional opportunities and flexibility for employers to offer HRAs to their employees.
“ECFC appreciates the efforts of the Administration for supporting HSAs and HRAs,” said ECFC Executive Director Martin Trussell. “This is a positive step for employers and American workers and advances healthcare consumerism through offering additional choices.”
ECFC is a leading non-profit organization dedicated to maintaining and expanding employee benefit programs on a tax-advantaged basis. ECFC represents and promotes employee benefit programs through effective lobbying and provides education and awareness to members, compensation practitioners, national opinion leaders and the general public to help advance healthcare consumerism. ECFC, which was founded in 1981 as the Employers Council on Flexible Compensation, is the single organization that focuses its efforts on preserving, protecting and defending the tax-advantaged programs currently available to working families through employer plan sponsors. Visit https://ecfc.org/ for more information.