Back to the Future: Is it Time to Bring Back R&C?

Back to the Future: Is it Time to Bring Back R&C?

Most if not all medical third-party administrators (TPAs) use “shared savings” programs to reduce the cost of non-network claims.

In the absence of a shared savings program, plans pay billed charges without any discounts after members pay the higher non-network copay/coinsurance. But with shared savings programs, TPAs use secondary (aka “blind”) networks, or negotiate directly with providers for discounts. And in return for their efforts, TPAs usually keep 25% to 35% of the savings. Are you following? (more…)

IRS Allows Taxpayers with Family Coverage to Use $6,900 HSA Limit for 2018

IRS Allows Taxpayers with Family Coverage to Use $6,900 HSA Limit for 2018

On April 26, 2018, the IRS announced that, for 2018, taxpayers with family high deductible health plan (HDHP) coverage may treat $6,900 as the annual contribution limit to their health savings accounts (HSAs).

Earlier this year, a tax law change for 2018 reduced the HSA contribution limit for individuals with family HDHP coverage from $6,900 to $6,850. After this change was announced, the IRS received complaints that the $50 reduction would be difficult and costly to implement.

The IRS has now decided to allow taxpayers with family HDHP coverage to use the original $6,900 limit for HSA contributions for 2018, without facing excess contribution penalties. (more…)