Untitled Document What’s New in Life and Group?
On March 30, 2010, the President signed into law the Health Care and Education Reconciliation Act. Below are key highlights we received from HR Concepts as they relate to FSA's, HRA's, and HSA's:

Beginning in 2011:

  1. Restrictions for OTC's. Amounts paid for over-the-counter medications will no longer be reimbursable from HSA's, health FSA's, or HRA's unless the drug is prescribed (or insulin).
  2. Tax on HSA distributions. The additional tax on distributions from an HSA that are not used for qualified medical expenses will increase to 20% of the disbursed amount (previously 10%).
  3. Wellness programs. Under a standard-based wellness program, a reward may be up to 30% of the cost of coverage (currently, 20% of the cost of coverage).

 Beginning in 2013:

  1. FSA contribution cap. The annual maximum amount available for reimbursement of incurred medical expenses under a health FSA must not exceed $2,500.