Discovery Benefits Pressroom

10/20/2011 Discovery Benefits named as one of the 2011 Best Places to Work in Insurance!

Discovery Benefits was once again honored by Business Insurance with the Best Places to Work award.

05/13/2011 IRS Announces 2012 HSA Limits

IRS released Revenue Procedure 2011-32 announcing the 2012 HSA limits.

04/26/2011 Discovery Benefits Meets with Congressional Representatives

Over 100 benefit plan administrators swarm the Hill in support of cafeteria/Flex plan benefits for employees FARGO, N.D.--(BUSINESS WIRE)-- Cafeteria plans and flexible spending arrangements enable employees to make tax advantaged “salary reduction” contributions to benefits such as health care and child care. Over 100 Flex plan professionals recently made the trip down advocacy lane to educate Congress about the importance of this employee friendly benefit. Two of the attendees were Suzanne Rehr and John Biwer of Discovery Benefits. They recently returned from a whirlwind Flex benefit conference held annually in Washington DC by the Employers Council on Flexible Compensation (ECFC).

04/05/2011 Reporting the Cost of Health Coverage on Form W-2

The Internal Revenue Service issued Notice 2011-28 that provides interim guidance regarding the informational reporting of an employee's employer-sponsored health plan coverage on Form W-2. The informational reporting requirement was added to the internal revenue code by the Affordable Care Act last year. Employers are required to comply with the informational reporting requirement beginning with the 2012 Form W-2 (forms required for the 2012 calendar year that employers must furnish to employees in January 2013).

01/26/2011 Wisconsin Residents Now Eligible for State Tax Break on HSA Contributions

January 25, 2011: Wisconsin Governor Scott Walker signed into law a plan that will give Wisconsin residents a tax break on contributions to health savings accounts. The plan brings Wisconsin in line with the federal tax code when it comes to money people set aside in health savings accounts. Until now, Wisconsin had been one of only six states that don't offer this kind of tax break.

01/06/2011 Omnibus Trade Act of 2010 Extends Health Care Tax Credit

The Omnibus Trade Act of 2010 has recently been passed by Congress and signed by President Obama. This measure extends the American Recovery and Reinvestment Act (ARRA) provisions that were made to the Health Care Tax Credit (HCTC), namely increasing the tax credit from 65% to 80%, and extending the deadline for COBRA continuation for HCTC-eligible individuals from December 31, 2010 to February 13, 2011. COBRA continuants whose coverage had been extended as a result of HCTC eligibility should notify Discovery Benefits of their extended eligibility by sending a copy of their HCTC eligibility letter to Discovery. Once this has been completed, their COBRA benefits will be extended through February 13, 2011. A Sample HCTC Eligibility Letter can be found using this link: http://www.irs.gov/individuals/article/0,,id=109960,00.html.

12/28/2010 Summary of IRS Notice 2011-5 Debit Cards and OTC Purchases

After January 15, 2011, health FSA and HRA debit cards may continue to be used to purchase over-the-counter medicines or drugs at drug stores and pharmacies, at non-health care merchants that have pharmacies and at mail order and web-based merchants that sell prescription drugs. These purchases will not require additional substantiation by Discovery Benefits, if the purchases meet certain requirements.

12/23/2010 IRS Modifies Notice 2010-59 to Allow Debit Card Purchases of OTC Medicines and Drugs

The IRS released Notice 2011-5 modifying the use of debit cards outlined in Notice 2010-59. After January 15, 2011, health FSA and HRA debit cards may continue to be used to purchase over-the-counter medicines or drugs at drug stores and pharmacies, at non-health care merchants that have pharmacies and at mail order and web-based vendors that sell prescription drugs, if they meet the following requirements:

12/20/2010 New Wisconsin Governor Proposes to End State Taxation of HSAs

Wisconsin Governor-elect Scott Walker said he would propose removing state income taxes on health savings accounts during a special economic development session in January. Wisconsin currently does not allow its citizens to deduct their HSA contributions from their state taxes, as federal law already allows. Wisconsin is one of only four states that still tax HSA contributions.

12/17/2010 President Obama Signs Tax Bill - Includes Extension of Transit-Parity Rules

President Obama signed into law this afternoon the new tax bill that included the extension of the transit-parking parity rules for another year. For 2011, the parking and the mass transit limit will now be $230 per month. The extension of the parity rules begins to apply January 1, 2011.

Hot Topics in Healthcare Reform

04/25/2011 Support FSA Legislation

As Congress considers changes to improve the Affordable Care Act and seeks to make our health care system work better, we are actively pursuing changes to the Act in an effort to remove restrictions placed on flexible spending accounts (FSAs). We are asking Congress to repeal the over-the-counter prescription requirement that is now in effect, as well as the annual $2,500 cap on FSA contributions that is set to go into effect in 2013. There has been some movement in Congress to fix the restrictions on FSAs. We support legislation introduced by Senator Kay Hutchinson and Representative Erik Paulsen (S. 312 and H.R. 605 respectively) that would repeal the requirement for patients to secure a doctor's prescription in order use an FSA to pay for the purchase of OTC medications and planned $2,500 contribution cap. Representatives Boustany (R-LA-1) and John Larson (D-CT-1) are urging their colleagues to join them in cosponsoring H.R. 1004, the “Medical Flexible Spending Account (FSA) Improvement Act.” The legislation would repeal the use-it-or-lose-it rule by allowing participants to cash out any remaining FSA balances at the end of the plan year with the funds treated as taxable wages in the year distributed. On March 10, 2011, H.R. 1004 was referred to the House Committee on Ways and Means, the first step in the legislative process.

11/22/2010 Changes in OTC Medication Reimbursement

As a result of Health Care Reform, the IRS will require a prescription for OTC medication to be eligible for reimbursement. This change is for medicine purchased on January 1, 2011 or later.