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R&R Insurance Blog

Shay Sherfinski

Recent Posts

IRS Sets 2018 HSA/HDHP Limits

Posted by Shay Sherfinski


On May 5, 2017, the Internal Revenue Service (IRS) released Revenue Procedure 2017-37 to announce the inflation-adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPs) for 2018. The IRS limits for HSA contributions and HDHP cost-sharing will all increase for 2018. These limits include:

  • Contribution limits for individuals rising to $3,450 (from $3,400 in 2017) and limits for family coverage rising to $6,900 (from $6,700 in 2017)
  • Max out of pocket figures – Single: $6,650 (up from $6,550 in 2017) and Family: $13,300 (up from $13,100 in 2017)

These limits vary based on whether an individual has self-only or family coverage under an HDHP.

The triple-tax-advantaged HSAs can provide account owners with benefits beyond savings to pay for health expenses. Reminder deposits into an HSA are tax free and contributions grow in the account tax free. Distributions are also tax free as long as the money is used for out-of-pocket health care expenses, including deductibles.

If the money is withdrawn before the account owner turns 65 and gets spent on something other than an eligible expense for health care, it is both penalized at a rate of 20 percent and taxed.

While those 55 and older can contribute an extra $1,000 as a catch-up contribution, it can only be made in the name of the person who is 55 or older; HSAs are not joint accounts. Therefore, even for family plan, a spouse younger than 55 cannot make that catch-up contribution in their own name.

The HSA contribution limits will increase effective January 1, 2018, while the HDHP limits will increase effective for plan years beginning on or after January 1, 2018.

Do not hesitate to reach out to Shay Sherfinski with any questions regarding these changes or for more information. 

Topics: Healthcare, health savings account

Reduce Insurance Costs & Increase Employee Productivity

Posted by Shay Sherfinski

Workplace_Wellnessjpg.jpgAccording to a study, 81% of large employers and 49% of small employers offer wellness programs to their employees. Aimed to improve employees’ overall well-being, these programs are often centered around weight loss, smoking cessation, and walking.

Why is it important to promote wellness in the workplace?

Wellness affects your company’s bottom line in many ways—in particular, it can lower health care costs, increase productivity, decrease absenteeism and raise employee morale.

Employees with health risk factors, such as being overweight or smoking, can directly impact insurance costs.  In turn, those employees will pay more for health care than employees with fewer risk factors. Wellness can help employees with high risk factors make the lifestyle changes to improve their quality of life and reduce their health care costs, while also helping employees with fewer risk factors stay healthy. 

What are the benefits of a wellness program?

The U.S. Centers for Disease Control and Prevention (CDC) promotes the formation of workplace wellness programs because, according to one of its studies, employees in companies with “a strong culture of health” are three times more likely to actively strive to improve their health.

In addition, wellness programs have shown to directly:

  • Control health insurance costs
  • Reduce Workers’ Compensation and disability costs
  • Increase employee productivity and absenteeism
  • Enhance morale and improve recruiting

Read more about the value a wellness program can provide on your organization and how to lower your insurance costs, or contact Shay Sherfinski.

Topics: Wellness Program, Employee Benefits, Wellness, lower insurance costs, corporate wellness