Snapshot - Universal Healthcare

"As Americans debated expanding government involvement in health care, Britain's National Health Service told Olive Beal she would have to wait eighteen months to get a hearing aid. She is 108."

from George F. Will's book, One Man's America. New York: Crown Forum, 2008.

CVS/pharmacy can track HSA/FSA expenses

WOONSOCKET, R.I., June 19 (UPI) -- CVS/pharmacy is making it easier to track eligible expenses for U.S. health savings accounts and flexible spending accounts, officials say.

Health savings accounts and flexible spending accounts are made available by many U.S. employers as part of company health benefits. HSAs and FSAs allow an employee to set aside a portion of pretax earnings to pay for healthcare expenses not covered by health insurance. Money deducted from an employee's pay into a HSA/FSA is not subject to payroll taxes, resulting in substantial payroll tax savings.

"The use of health savings accounts and flexible savings programs has grown dramatically over the past two years -- a 35 percent increase since last year," said Rob Price, senior vice president of marketing for CVS/pharmacy said in a statement. "But many consumers don't realize that managing their funds throughout the year can be simple and, more importantly, can result in significant cost-savings, particularly for those with chronic conditions."

CVS/pharmacy registers now provide shoppers with register receipts that highlight prescription medicines, over-the-counter remedies and other qualifying purchases so they can be easily identified and tracked with a special symbol indicating which items are HSA/FSA-eligible, Price said.

Presidential candidates’ plans for health care reform

Aetna recently posted a review of the plans for health care reform that are bing promoted by Senator Barack Obama and Senator John McCain. If you wish to view this article, click here.

Social Security debit cards now available

Social Security beneficiaries can now receive their payments on a debit card, rather than waiting for a paper check, the Washington Post reports.

The U.S. Treasury Department is trying to persuade the more than 10 million people who still receive a check to switch to a debit card. An individual does not need a bank account in order to use the card. This is an important point since nearly four million Social Security or Supplemental Security Income recipients do not have a bank account.

The Direct Express card functions like a regular debit card at any ATM, bank or retailer that accepts MasterCard. The card is free to acquire and use, says Judith Tillman, commissioner of the agency's financial management service. For more information, or to sign up for a Direct Express card, click here.

The program has benefits for all parties - Beneficiaries can avoid check-cashing fees, and it is estimated the government could save about $42 million per year.

IRS Allows Tax-Free Rebate Withdrawals from IRAs

The Internal Revenue Service said that economic stimulus payments directly deposited to individual retirement accounts and other tax-favored accounts may be withdrawn tax- and penalty-free.

The relief is designed to help taxpayers who were unaware that by choosing direct deposit for their entire regular tax refund, they were also choosing to have their stimulus payment directly deposited as well. To qualify for relief, the economic stimulus funds must be withdrawn by April 15, 2009, in most cases. Without this relief, taxes, penalties and other special rules would apply to amounts removed from these types of accounts. Regular tax refunds are not eligible for this relief.

The tax relief is available for amounts withdrawn from tax-favored accounts that are less than or equal to a taxpayer's directly deposited stimulus payment. Thus, a taxpayer whose $1,200 stimulus payment is directly deposited into their IRA can take out up to $1,200 from the IRA, tax-free and penalty-free.

In general, the deadline for these withdrawals is the due date or extended due date for filing a 2008 return. For most taxpayers, this means April 15, 2009. For those who obtain extensions for their filings, they have until October 15, 2009.

Information on how to report these withdrawals and to claim relief will be included in tax forms and instructions for 2008. To see the IRS Announcement 2008-44, click here.

Snapshot - Employee Loyalty

Snoopy and the people at MetLife did a study of employee loyalty as it relates to employee benefits. While this is good information, I wonder how these items stack up against things like vacation, or flexible work schedule?

2009 HSA Limits

Last month, The IRS released the 2009 cost-of-living adjustments for HSA contribution limits, High Deductible Health Plan (HDHP) deductibles, and out-of-pocket maximums. Historically, the IRS released these numbers in October or November. But in recognition of the difficulty plan sponsors were having trying to design or re-design plans because of the new limits, Congress passed a law that requires the IRS to publish these adjustments by June 1 of the preceding year. To see the press release with the new limits, click here. Here is a quick summary:

HSA Contribution Limits: The 2009 annual HSA contribution limit for individuals with self-only HDHP coverage is increased from $2,900 to $3,000. For individuals with family coverage, the limit is increased from $5,800 to $5,950.

HDHP Minimum Required Deductible: The 2009 minimum annual deductible for self-only HDHP coverage is increased from $1,100 to $1,150. For individuals with family coverage, the limit is increased from $2,200 to $2,300.

HDHP Out-of-Pocket Maximum Limits: The 2009 maximum limit on out-of-pocket expenses (including items such as deductibles, co-payments, and co-insurance) for individuals with self-only HDHP coverage is increased from $5,600 to $5,800. For individuals with family coverage, the limit is increased from $11,200 to $11,6000.

HDHP Catch-Up Contribution Limits: The 2009 maximum limit on catch-up contributions that can be made by HSA-eligible individuals is increased from $900 to $1,000. Unlike the other changes listed above, the catch-up contribution figure will no longer change annually.

As a side note, we are often asked if this catch-up contribution is pro-rated the year in which someone turns 55. The answer is 'no'. If you turn 55 on December 31, you get to make the complete catch-up contribution for that plan year.

Making 'Cents' - TGI... Thursday?

With the cost of gas approaching $4.00 a gallon, some employers have turned to compressed work weeks to help employees save on commutes. On Long Island New York, Suffolk County legislator Wayne Horsley is offering employees the chance to work four 10-hour shifts instead of five eight-hour shifts. According to their estimates, this could save 461 barrels of oil in their 120-day pilot program.

Oh, and there is an added benefit — less employees in the office cuts energy costs. Not to mention the prospect of a four day work week every week! Sign me up.

Snapshot

Here is an interesting graph from a Kaiser survey showing the average annual cost of insurance premiums for group health coverage. It show the breakout of employer and employee contributions.

Wellness programs

The American Heart Association's (AHA) has a program called Greater Washington Start! Program. It is designed to promote "a culture of physical activity and health to live longer, heart-healthy lives through walking." And since we spend most of our waking hours at work - it's the perfect place to be more active! In fact, studies show worksite fitness programs can:

• Increase productivity
• Reduce absenteeism
• Lower turnover
• Reduce healthcare costs

Getting started
You may already have a wellness or fitness program in place, which is a great start to a healthier work environment! Here are other ways your company can increase workplace activity and work toward AHA's recognition as a Start! Fit-friendly company.

• Provide walking routes
• Increase healthy eating options
• Encourage employees to wear athletic shoes on designated "sneaker days"

When company leaders make health a priority and show their commitment, employees follow. When employees are physically active it leads to healthier employees, healthier businesses and a healthier outlook on the future of health care.

Click here to learn more about AHA's Start! program and the rewards of achieving Fit-friendly status.