FSAs); employer contributions to health savings accounts (HSAs) and Archer MSAs
(medical savings accounts named for Congressman Bill Archer), including pre-tax salary reduction contributions but not after-tax contributions; on-site medical clinics, except to the extent they offer only de minimis or limited services to employees; executive physical programs; retiree coverage; multi-employer plans; governmental plans; coverage for a specified disease or illness if the coverage is excludable or deductible from gross income; and both insured and self-funded plans.
The cost of health FSAs, Archer MSAs
, HRAs, retiree coverage and multi-employer plan coverage are also expected to be included when calculating whether the threshold that triggers the Cadillac tax has been crossed.
The additional tax on distributions from HSAs and Archer MSAs
not used for qualified medical expenses increased to 20 percent.
It also does not include contributions to Archer MSAs
, health savings accounts or health reimbursement accounts.
Employees need a prescription to be reimbursed for over-the-counter medications and supplies run through their health FSAs, HRAs, HSAs and Archer MSAs
At the same time, PPACA increases the tax on distributions from a health savings account or an Archer MSA
that are not used for qualified medical expenses to 20% (from 10% for HSAs and from 15% for Archer MSAs
) of the disbursed amount.
Health Related Employer Reimbursements and HSA Deductions: Eligible medical expenses will be restricted to insulin and prescribed medicines or drugs for reimbursements under employer-provided health flexible spending accounts (FSAs) and health reimbursement arrangements as well as for deductions under HSAs and Archer MSAs
also will have restrictions on buying over-the-counter drugs without a prescription starting Jan.
were available (see Pilot Cutoff below) to small business employees and self-employed individuals with high deductible health insurance coverage.
Based on some experience with Archer MSAs
, it is likely that investment firms will take the marketing lead on these plans, viewing them as a way to increase assets under management.
section] 125; Archer MSAs
as defined in Section 220(d) of the Internal Revenue Code, 26 U.
220, added by the Health Insurance Portability and Accountability Act of 1996, allows employees of small employers and self-employed individuals to establish Archer MSAs
to help pay for medical expenses in conjunction with a high-deductible health plan.