June 14, 2011
for Small Employers!! Click on
this link to learn beneficial
new information regarding IRS
W-2 Reporting of the cost of
June 6, 2011
Be sure to check our new Health Savings
Accounts page, by clicking here.
JANUARY 3, 2011
Are you required to
complete the W-2’s for your business?
This isn’t really ‘Health’ related…other
than this time of year completing W-2’s
makes my blood pressure rise! J However,
here is a VERY helpful web-site:
December 28, 2010
December 29, 2010: Employers – Remember, in 2011 you
can report how much you spend on group health coverage for
IRS has added a W-2 group health
spending options – click here to read an article that
provides more details:
I conclude my segment on Health Savings
Accounts with this
HSA FACT SHEET. It provides some of the
advantages of HSA's and reviews much of the information
discussed the past several days.
Beginning tomorrow I’ll have some updates
that will interest you regarding health insurance changes
that have already taken affect as a result of the new health
October 26, 2010
Another Great Question we received on
Health Savings Accounts!
Question: Can I withdraw money from my
HSA for non-medical purposes?
Answer: Yes (answered hesitantly), but
there will be a 20% penalty tax for that withdrawal.
In fact, it is actually a little worse than
You will not only have a 20% penalty, but you
will also owe taxes on the money withdrawn. This 20% penalty
is an increase from 10% and is effective 1/1/11.
Side-note: this increase is a result of the
new health care reform.
October 25, 2010
customers often asked on Health Savings Accounts (cont.):
"Can I pay my health insurance premiums from
Unfortunately, no – except, there are a few
1) Qualified long-term care insurance;
2) Health insurance while you are
receiving federal or state unemployment compensation; or
3) Continuation of coverage plans,
like COBRA, required under any federal law; or
4) Health insurance after you turn 65,
but not Medicare supplement insurance
If any of the above categories apply to you,
that is one more reason you could benefit from setting up an
October 22, 2010
up an HSA – Part II
Yesterday we reviewed qualified HSA medical
plans, today we’ll discuss ‘qualified medical expenses’
within HSA medical plans.
What are qualified medical expenses?
A qualified medical expense is one for
medical care as defined by Internal Revenue Code Section
213(d). The expenses must be primarily to alleviate or
prevent a physical or mental defect or illness, including
dental and vision. Most expenses for medical care will fall
under IRC Section 213(d).
However, some expenses do not qualify.
A few examples are:
Surgery for purely cosmetic reasons
Health club dues
Illegal operations or treatment
Toothpaste, toiletries, and cosmetics
Beginning 1/1/11, no over the counter medications without a
On Monday we’ll review which opportunities
exist for paying health insurance premiums from an HSA.
October 21, 2010
I, and how do I, set up an HSA?"
Today we’ll cover step one of setting up an
HSA – Procure a ‘qualified’ high-deductible health insurance
The first question I hear at this stage is,
“what does ‘qualified’ mean?
A: An HSA medical plan has to meet certain
criteria determined by IRS regulations, such as;
An individual deductible can be no lower than $1200 and can
be no higher than $5950.
Prescription drugs are applied to the medical deductible and
there is no prescription drug card with co-pays.
Preventive benefits, such as annual exam, colonoscopy,
mammogram can be paid by the insurance company without
having to meet the deductible.
Just because you have a high deductible
policy doesn't mean that it is HSA qualified. If you are
unsure, be sure to check with your insurance company for
Tomorrow, we’ll answer the question: what are
qualified medical expenses?
October 20, 2010
Savings Accounts (HSA's)!
What are they?
Who can set them up?
Who should set them up?
Are they a viable solution to our ‘health
care/insurance cost crisis’?
In the next few days we’ll be answering these
Today though, we’ll answer the first one,
“What is a Health Savings Account (HSA)?”
An HSA is a special bank savings account
owned by the insured person where contributions can be made
that are tax deductible. These contributions are used to pay
for current and future medical expenses. You are not taxed
on deposits made into these accounts nor the interest they
earn as long as withdrawals are for qualified medical
expenses. An individual can deposit up to $3050 per year or
if you have family members on the insurance policy, you can
contribute up to $6,150 per year.
Tomorrow we’ll answer, “Who can set up (and
how) an HSA?"
September 9, 2010
adult children and health insurance
- reform, insurance
Health insurance companies will be required to include
children up to the age of 26 on their parent’s policies.
The law goes into effect September 23, 2010. Companies
must comply by October 1, 2010.
There are no restrictions. They do not have to be a
student, and can even be married (but their spouse or
children cannot be on this plan).
Benefit: This helps give our children additional time to
secure employment with health insurance benefits.
Drawback: There may be a possible increase in premium.
For more details, email Debbie at