Q & A: Health Care Reform and Foundations
How will health care reform affect your health benefits through Foundations? We have compiled these questions and answers to help you learn more about this key topic. We will continue to post the questions and answers on a timely basis.
Question: Everything I have read indicates that coverage of adult children up to the age of 26 regardless of student status would begin six months from the date the bill was signed by the president, or Sept. 23, 2010. Does this timing not apply to our plan until Jan. 1 for some reason?
Answer: The Jan. 1 date is the correct date. The effective date is “plan years beginning after six months from the date the bill was signed by the president.” Our plan year is a calendar year. So the plan year six months after March 23, 2010 is Jan. 1, 2011.
Question: The Flexible Spending Account (FSA) limit will be decreasing in 2013. Will this have an impact of the Health Savings Account (HSA) limits?
Answer: We have not seen any adjustments to the HSA amounts as a result of Health Care Reform. Only that beginning in 2011, if a withdrawal before age 65 for nonqualified medical expenses occur, the penalty tax will be 20% instead of 10%.
Question: Are we now going to be taxed on the value of health coverage in 2011 on our W-2?
Answer: At this time, this is a reporting requirement only that is required of employers to provide to the federal government.
Question: Regarding covering adult children up to age 26; I have read that they can be single or married. Is this correct?
Answer: They can be single or married. They don’t need to live with the parent. However, we do not need to cover the spouse if they are married or any dependent children of the adult child.
