The Washington Report
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May 2, 2018
Health
Departments Release Clarification of Final Rules for Grandfathered Plans, Preexisting Condition Exclusions, Lifetime and Annual Limits, Rescissions, Dependent Coverage, Appeals, and Patient Protections under the Affordable Care Act
On April 30, 2018, the Departments of Treasury, Labor, and Health and Human Services (the Departments) released a final rules clarification for grandfathered plans, preexisting condition exclusions, lifetime and annual limits, rescission, dependent coverage, appeals, and patient protections under the Affordable Care Act (ACA).
On November 18, 2015, the Departments published final rules in the Federal Register titled “Final Rules for Grandfathered Plans, Preexisting Condition Exclusions, Lifetime and Annual Limits, Rescissions, Dependent Coverage, Appeals, and Patient Protections Under the ACA” (the November 2015 final rule), regarding, in part, the coverage of emergency services by non-grandfathered group health plans and health insurance issuers offering non-grandfathered group or individual health insurance coverage, including the requirement that non-grandfathered group health plans and health insurance issuers offering non-grandfathered group or individual health insurance coverage limit cost-sharing for out-of-network emergency services and, as part of that rule, pay at least a minimum amount for out-of-network emergency services.
The American College of Emergency Physicians (ACEP) filed a complaint in the United States District Court for the District of Columbia, which on August 31, 2017, granted in part and denied in part without prejudice ACEP’s motion for summary judgment and remanded the case to the Departments to respond to the public comments from ACEP and others. In response, the Departments are issuing this notice of clarification to provide a more thorough explanation of the Departments’ decision not to adopt recommendations made by ACEP and certain other commenters in the November 2015 final rule.The final rules clarification becomes applicable on May 3, 2018.
The final rules clarification is temporarily available here.
(The clarification will be published in the May 3, 2018, Federal Register.)
The November 18, 2015, final rules are available here.
IRS Announces Return to $6,900 HSA Family Contribution Limit for 2018
On April 26, 2018, the Internal Revenue Service (IRS) issued Revenue Procedure 2018-27, in which it provided relief for individuals with family coverage under a high deductible health plan (HDHP) who contribute to a health savings account (HSA). For 2018, individuals with family coverage under an HDHP may treat $6,900 as the maximum deductible HSA contribution.
The contribution limit for 2018 had been previously reduced by $50 to $6,850, but in Revenue Procedure 2018-27, the IRS provides that the original $6,900 will apply for 2018.
For details on what this change means for individuals and employers, please see For HSA Limits, What Goes Up Must Come Down—and Up Again in the Publications section.
Revenue Procedure 2018-27 is available here.
Aon Publications
For HSA Limits, What Goes Up Must Come Down—and Up Again
The third time proved to be the charm for employer sponsors of health savings account (HSA)/high deductible health plans (HDHPs) that have been dealing with the cutback in the HSA family contribution limits.
On April 26, 2018, the Internal Revenue Service released Revenue Procedure 2018-27, which revises the 2018 HSA contribution limits for individuals with family coverage under an HDHP. These contribution limits have been increased from $6,850 to the previously announced limit of $6,900. Taxpayers may treat the original $6,900 limit as the 2018 contribution limit for eligible individuals and may return any distributions of $50 incurred because of the prior, reduced contribution limit announced earlier this year.
The Aon bulletin, which covers what this means for individuals and employers, can be found here.