Health Savings Accounts (HSAs) have been around for about 13 years, but they are still often misunderstood. HSAs are not employer-sponsored health plans, and they are not checking accounts. They are more accurately described as individually owned, tax-exempt trusts or custodial accounts available to individuals covered by an HSA eligible health plan. 

What is an "eligible" health plan? The plan must meet the deductible and out-of-pocket requirements set by the Internal Revenue Service (IRS), and must have the words "qualifying high-deductible health plan" or a reference to the Internal Revenue Code Section 223 in the declaration page of the policy or other official communication from the insurance company. If this documentation is not provided or available, it is not a qualifying plan. Not all high-deductible plans are HSA-qualified even if they meet deductible and out-of-pocket requirements. 

HSAs have two components, a cash component and an investment component, both under the tax sheltered umbrella. Depending on the insured's need in a particular year, they have the opportunity to benefit from both. Contributions into an owner's HSA are not taxed, interest paid is not taxed, nor are any distributions for qualified medical expenses.

The IRS sets contribution limits each year, and for 2018 the maximum contribution for "single coverage" is $3,450 and $6,900 for "family coverage," unless you are over 55, in which case you can contribute an additional $1,000 to your HSA.  Also, contributions to an HSA are NOT use-it-or-lose-it like flexible spending accounts, and you have until tax day (April 15th) to contribute into an HSA in order to get the tax benefit for the prior year.

One of the most important elements employers and individuals should consider when evaluating an HSA offering is whether the medical plan will work for them. HSA-qualified plans typically offer lower monthly premiums than "traditional" health plans, however, the insured is responsible for all costs (except preventive care) until the deductible is met. With this in mind, insureds should analyze their needs and budget, both for themselves and family, to choose a plan best for them.

We are happy to assist with this important decision, so please feel free to call COPIC FSG for help.  Contact Andrea Levine at (720) 858-6287 with your questions.

National headline: Massive Equifax Data Breach Could Affect Half of the U.S. Population

Local health care:  Hackers may have gained access to the personal data of more than 3,000 patient families at Children's Hospital Colorado

One of the greatest risks that medical professionals and medical facilities face today is the loss or misuse of sensitive patient data. In addition, as medical practices rely on networked devices, electronic health records, and external business associates handling patient and financial data, they become more susceptible to cyber threats including computer viruses, malware, hacking, or lost or stolen mobile devices.

The largest reported health care data breaches that occurred in 2017 have potentially affected nearly 1.5 million people, with hacking being the leading cause of the breaches:

If you are in a long-term, committed relationship, you have many of the same financial concerns as married couples. However, you lack many of the legal protections and advantages that married couples enjoy. Here are some tips that can help you and your partner stay on the road to financial security.

As headlines continue to report the battle surrounding the Affordable Care Act and the individual market, there is some good news in the employer sponsored market. For the sixth year in a row, the Kaiser Family Foundation has reported a fairly modest increase in premiums, based on their annual survey. 

While individual carriers are taking a 27% price increase on average, we have learned that at least one carrier will have zero increase in rates for the first quarter of 2018, and may even have a small decrease. We hope this translates to good news in the form of renewals, and that you are able to continue to recruit and retain quality employees by offering valuable benefits at affordable prices. 

COPIC FSG works to stay apprised of the changing landscape so we can provide the best options for your specific situation. Contact Andrea Levine at (720) 858-6287 for more information.