Cambridge Insurance Advisors

Hearing more about ICHRA, QSEHRA these days? What About Self Funding and Captives? Have a pharmacy Issue?.. Next article we will dive deep into the world of Pharmacy Benefit Managers.

While HSAs have grown in notoriety over time, their benefits are still underutilized by many Americans who have them. In a recent Wall Street Journal Article NFP/Benefit Partners was quoted: “While HSA money ideally should be allowed to accumulate and increase through investing, there are people who choose a high-deductible plan because it has a cheaper premium. An HSA can work for them, too, Benson says.” Benson talks about how the money saved monthly from electing a high-deductible plan, if possible, should go into an HSA. “Instead of spending that savings elsewhere, he recommends they invest the money in an HSA, reap the tax benefits, and use it as medical expenses come up or down the road for retirement if they are able.” Common Questions About HSAs Explained Who can use an HSA? To contribute to an HSA, you must be on a high-deductible health plan, offered by your employer. High deductible plans aren’t for everyone, and you should consider your own and your family’s health and the amount of potential out-of-pocket costs for a high deductible plan. Why consider an HSA? HSAs have many advantages, including tax benefits as well as the potential for your money to grow significantly over time. Contributions to HSAs aren’t subject to federal income tax if used for medical expenses, and earnings in the account grow tax-free. Unspent money in an HSA rolls over at the end of the year and the money you put in your HSA has no expiration date. It will stay in your account forever, and can be used tax-free for medical expenses even after you retire. What can HSA funds be used for? HSA funds can be used for many types of medical expenses, including deductibles, copayments and coinsurance. After age 65 or upon becoming disabled, the money can be withdrawn tax-free for medical expenses, or with income tax on the amount withdrawn for other uses. Note that there is a 20% penalty if you withdraw for non-medical expenses before turning 65 or becoming disabled. How often should I adjust my investments in an HSA? Like other?investments and retirement accounts, those with HSAs should reassess their investment options at least once a year and should be adjusted to fall in line with overall target allocations and risk tolerance. Can I contribute to a 401(k) and an HSA? Yes — and you likely should. Many people are already aggressively contributing to their 401(k) but aren’t fully utilizing their HSA to its maximum potential. Note that the HSA contribution limit is adjusted each year and is higher for participants 55 and older. For 2025, the limit is $4,300 for self-only accounts, with an additional $1,000 allowed if you’re 55 or older. It may be beneficial to contribute to your 401(k) up to your employer’s match, if they offer a match, and then contribute to the HSA because of the likelihood of needing the money for medical expenses in retirement. Once the HSA is maxed out, you can continue to fund the 401(k) further, to its applicable limits.

???Cambridge Annual Offsite in NYC? We just wrapped up an incredible two-day strategy offsite in New York City! It was a fantastic opportunity for our regional and national teammates to brainstorm and align on our goals for the upcoming year. ???Highlights: Interactive workshops and breakout sessions on top trends Engaging sessions on financial performance and strategic initiatives Team-building activities that strengthened our collaboration A big thank you to everyone who participated and contributed to making this event a success. #TeamWork #Strategy #Leadership #CompanyCulture #NYC

Each and every one of us from Cambridge Insurance Advisors wishes you a Happy Thanksgiving.

The U.S. Department of Labor confirmed that cybersecurity guidance issued in 2021 applies to all ERISA-covered health and welfare plans. This guidance goes beyond what is required under HIPAA for health plans. Click below to learn more. https://lnkd.in/eBwssrT2

The IRS released final instructions and forms for calendar year 2024 ACA reporting, including Forms 1094-C, 1095-C, 1094-B, and 1095-B. While there have not been significant changes to the forms, the penalties for failure have increased. Click below to learn more. https://lnkd.in/eV6Vm8Rd

The Departments of Health and Human Services , Labor, and the Treasury recently released final rules pertaining to the Mental Health Parity and Addiction Equity Act of 2008 with the aim of ensuring that individuals who seek treatment for mental health or substance use disorder reasons do not face greater burdens than they would face when seeking coverage for medical/ surgical reasons. The final rules amend certain provisions of the existing MHPAEA regulations and add new regulations to set forth content requirements and timeframes. Click below to learn more. https://lnkd.in/e63viubc

Download our 2024 Third Quarter Compliance Digest, featuring all of the released compliance bulletins for July through September. This document is a valuable resource, putting all of the latest health care reform news and updates in one location. https://lnkd.in/eZA94XAT

For plan years beginning on or after January 1, 2025, employers that took advantage of temporary relief to offer free (or reduced cost) telehealth or other remote care services to participants in a high-deductible health plan before the minimum IRS deductible is satisfied should discontinue doing so in order to preserve HSA eligibility. Click below to learn more. https://lnkd.in/ecf-9Fhh

If insurance carriers don’t satisfy certain medical loss ratio thresholds, rebates are available to employers and carriers are required to distribute rebate checks to employers by September 30, 2024. Click below to learn more about the rebates and how to distribute them to employees. https://lnkd.in/eUMEqw5G