A health savings account (HSA) is an employer- established benefit often offered in conjunction with employer-provided health plans. The plans are designed to help offset the costs of high-deductible health plans (HDHP). In order to enroll in a HSA, you must also be part of a HDHP that meets the minimum deductible and out-of-pocket limits.
In May, the IRS issued Revenue Procedure 2020-32. The procedure adjusted the amounts that individuals can contribute annually to their HSAs. The adjusted amounts are meant to reflect inflation and any cost-of-living increases. The self-only HSA contribution amount was raised by $50 and the family HSA amount was raised by $100. Please consult the following table for specific amounts.
HDHP minimum deductibles were not raised for self-only or family plans. Maximum out-of-pocket amounts for HDHP increased by $150 for self-only and by $200 for family plans.
If you are or will be 55 or older by the end of the year, you may add an additional $1,000 to your HSA. This catch-up contribution is available to individual account holders. Because there are no joint HSA accounts, the account holder must be over 55 by the end of the year to make the extra contribution, even for family HSA accounts. If you and your spouse are both over 55, then you must have two separate HSA accounts in order for both of you to contribute the extra $1,000.
The Coronavirus Aid, Response and Economic Security (CARES) Act signed into law in March expanded HSA- and Flexible spending account (FSA)-eligible purchases to include over-the-counter medications without a prescription. Under the Act, menstrual care products such as tampons and pads are now classed as eligible medical expenses as well. These changes are permanent and retroactively and apply to purchases made from January 1, 2020.
Employers should evaluate their HDHPs and HSAs to ensure that they meet the new federal guidelines. For more information about these types of plans, please contact CTSI at 303 861 0507.
A PDF of this Technical Update is available here.
SB20-217, concerning law enforcement accountability and signed by the Governor on June 19, includes several provisions that have implications for pool insurance coverage. A PDF of the signed act is available here. SB20-217 & CAPP Based on the manuscript form of the CAPP policy, which is designed to meet the current and expanding needs of […]
Of Colorado’s 30 snake species, only three pose a threat to humans: the prairie rattlesnake, the Western rattlesnake and the massasauga rattlesnake. Observe and share the following safety tips to better understand snake behavior: Rattlesnakes like to hide. Snakes do not like to interact with humans or other animals. If the snake coils up and […]
James Buchanan Adams III, CTSI Property & Liability Senior Claims Examiner, passed away on April 25, 2020. James was a valued member of the CTSI team for over 13 years. Born in Atlanta, Georgia, James grew up in Brooklyn, New York. He moved to Littleton, Colorado, with his family in 1989 and enjoyed the many […]
What does it mean to be civil? How can we create a civil workspace? The dictionary defines civility as courtesy or politeness. In the workplace, civility can be defined as behaviors that produce feelings of respect, dignity, and trust. Unfortunately, acts of incivility can be easier to identify. These acts, like those listed below, can […]