Dear :

There’s no question the Affordable Care Act (ACA) will continue to change the way employers approach health benefits, regardless of recent employer mandate delays.

In looking ahead to 2015, employers are now making tough decisions about the type and level of coverage they can offer their employees‒ and to whom they will offer coverage ‒ as they strive to manage costs and comply with new rules. These decisions will, undoubtedly, mean significant changes as companies adopt an approach that brings employees into the equation by designing a budgeted, defined-contribution, consumer-directed health benefit model.

This doesn’t mean that employers let their employees fend for themselves. There are reliable and proven tax-advantaged programs they can easily put in place to help employees mitigate their out-of-pocket costs and risk.

For example, flexible spending arrangements (FSAs), which have a long history of helping workers pay for healthcare costs not covered by insurance, have become an even more attractive tool. Not only do they offer unprecedented tax savings, but a recent change to the “Use-or-Lose” rule, that the Employers Council of Flexible Compensation (ECFC) fought hard to win, now allows for a carryover of $500 in unused funds in health FSAs

ECFC also anticipates more businesses will adopt high-deductible health plans (HDHPs). “Now that HDHPs are the standard set by the ACA for plans in the exchanges, it will only fuel their popularity among corporate America,” explains Natasha Rankin, Executive Director, Employers Council on Flexible Compensation. Health savings accounts (HSAs) and integrated health reimbursement arrangements (HRAs) are affordable, tax-advantaged solutions that can be offered to employees to help offset deductibles that, according to ACA guidelines, have minimums of $1,250 for an individual and $2,500 for a family.

We would be happy to put you in touch with the experts at the Employers Council on Flexible Compensation to further discuss the vital role of tax-advantaged benefits programs can play as ACA regulations change how employers approach health insurance. Please feel free to contact me to coordinate an interview.

Best regards,