2020

The IRS announced Revenue Procedure 2020-45 which provides the 2021 cost-of-living increases for inflation for certain items. In 2021, the:

• Annual Healthcare Flexible Spending Account (FSA) contribution limits will not increase they will remain at the 2020 amount of $2,750
• Monthly limit for Transit and Parking will not increase they will remain at the 2020 amount of $270 per benefit
• Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $50 for individual coverage from the current amount of $5,250 to $5,300 and the maximum reimbursement amount will increase $100 for family coverage from the current amount of $10,600 to $10,700

As a reminder, the IRS announced 2021 Health Savings Account (HSA) contributions limit increases earlier this year. In 2021, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,550 to $3,600, and the family coverage contribution limit will increase $100 from the current $7,100 to $7,200. 

Please note that this email has been sent to the Company Plan Administrator and Broker Contacts, please share with others in your organization.

If you have any questions, please contact American Benefits Group for more information.

The IRS announced Revenue Procedure 2020-45 which provides the 2021 cost-of-living increases for inflation for certain items. In 2021, the:

• Annual Healthcare Flexible Spending Account (FSA) contribution limits will not increase they will remain at the 2020 amount of $2,750
• Monthly limit for Transit and Parking will not increase they will remain at the 2020 amount of $270 per benefit
• Annual maximum reimbursement for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) will increase $50 for individual coverage from the current amount of $5,250 to $5,300 and the maximum reimbursement amount will increase $100 for family coverage from the current amount of $10,600 to $10,700

As a reminder, the IRS announced 2021 Health Savings Account (HSA) contributions limit increases earlier this year. In 2021, the annual HSA contribution limit for individual coverage will increase $50 from the current $3,550 to $3,600, and the family coverage contribution limit will increase $100 from the current $7,100 to $7,200. 

Please note that this email has been sent to the Company Plan Administrator and Broker Contacts, please share with others in your organization.

If you have any questions, please contact American Benefits Group for more information.

On May 12^th, the IRS released Notice 2020-29 and 2020-33. These notices provided new relaxed rules for 2020 for making elections under Cafeteria plans, using amounts during a grace period or carryover period changes to the method determining the carryover amounts under Health FSAs and clarifying which premiums can be reimbursed under ICHRAs. The following is an explanation of both notices.

IRS and DOL Provide Relief for Participants and Plan Sponsors from Certain Time Deadlines Due to COVID-19 Pandemic

Yesterday, recognizing the impact of the COVID-19 Pandemic, the Internal Revenue Service and the Department of Labor released guidance that extends the period of time that a participant has in enrolling in coverage under a health plan, paying for COBRA continuation coverage, submitting claims for coverage and disputing denials of claims for benefits. The guidance also extends the period of time that a group health plan sponsor or administrator has to provide a COBRA election notice. Agency FAQs were also released related to the guidance. Essentially, the guidance provides that actions that must be taken with the time period from March 1, 2020 until 60 days after the time the federal government declares the COVID-19 emergency (referred to as the “Outbreak Period”) has ended will be disregarded . 

The guidance states that the following actions that are required to be taken during the Outbreak Period are extended until after the Outbreak Period ends:

COVID-19 Update - Please forward this communication to others in your organization who may need it.

Reminder - We request you help us in an effort to reduce US mail wherever possible

• Manual Claim Reimbursement: these can be submitted electronically either by uploading information through the participant portal, using the camera feature with our mobile application or faxing to our secure fax viewer.
• Monthly Administrative Service Fee Invoices Payments: communications have been sent to all AP contacts for each organization. Within the communication, we identify alternative methods of payment.
• COBRA and Direct Billing: If you are currently receiving your remittances by check we ask that you sign up for ACH. Please reach out to accounting@amben.com.