Eighth Circuit Affirms No Requirement to Exhaust Administrative Remedies Absent Review Language in Plan Document
2022 HSA Contributions and Corrections Deadline April 18
Individuals who were HSA-eligible in 2022 have until the tax filing deadline to make or receive contributions. So, 2022 HSA contributions must generally be made by April 18, 2023. This includes employer contributions. The 2022 contribution limit is $3,650 for self-only coverage and $7,300 for any tier of coverage other than self-only. Those aged 55 and older are permitted an additional catch-up contribution of $1,000.
Generally, an individual’s maximum annual contribution is limited by the number of months they were eligible for the HSA. There is an exception to this rule. An individual who was HSA eligible on December 1 is permitted to contribute the full statutory maximum for the year. However, if eligible employees do not remain HSA eligible through December of the following year, they may experience negative tax consequences.
Individuals who contributed more than the allowable amount for 2022 should remove the excess contributions and associated earnings by April 18, 2023. The excess would be subject to income tax. If the employee fails to remove the excess contribution by the income tax filing deadline, an additional 6% penalty applies for each tax year the excess remains in the account. Employees who were not eligible for a contribution or contributed more than the allowable amount for 2022 should work with the HSA bank/trustee to process the excess contribution. Employees should consult with their tax advisors for specific tax advice and guidance.
For further information, please see IRS Publication 969 and our recent FAQ.
An employee had a child in December 2022, but they have not yet added her to the employer’s group health plan. With the COVID-19 extension relief ending soon, is there still time to add her?
Changes to Maryland’s Benchmark Plan
March 28, 2023
On March 17, 2023, the Maryland Insurance Administration (MIA) announced revisions to certain essential health benefits (EHBs) included in Maryland’s benchmark plan. The benchmark plan sets minimum standards of coverage under fully insured small group plans (and individual plans) issued in the state. MIA determined certain benefits and exclusions in the Maryland benchmark plan are discriminatory and must be revised. In particular, regarding small group plans, visit limits for habilitative services for adults must be removed.
State Prohibits Discrimination in Insurance Markets Based on Sexual Orientation and Gender Identity
March 28, 2023
On March 17, 2023, Director Fox issued Bulletin No. 2023-07-BT/CF/CU/INS, announcing that the state will prohibit health insurance plans from discriminating based on sex, sexual orientation and gender identity.
On March 16, 2023, Gov. Whitmer signed into law an amendment to the Elliott-Larsen Civil Rights Act that included sexual orientation and gender identity and expression as legally protected civil rights in the state. Pursuant to the amendment, the bulletin asserts that health insurance plans cannot deny access, limit benefits, impose additional cost-sharing, or engage in discriminatory marketing practices based on an individual's sex, which now explicitly includes gender identity and sexual orientation.
Employers with plans regulated by the state should be aware of this development.
This material was created by PPI Benefit Solutions to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The service of an appropriate professional should be sought regarding your individual situation. PPI does not offer tax or legal advice. "PPI®" is a service mark of Professional Pensions, Inc., a subsidiary of NFP Corp. (NFP). All rights reserved.