Cadillac Tax one Step Closer to Being Repealed and IRS Updates to HSA Benefits

Last night, July 17th, the House of Representatives passed Bill H.R. 748 with an overwhelming majority of 419 to 6. This bill would finally repeal the excise tax on high cost health plans, commonly known as the Cadillac Tax. Prior to this point lawmakers lacked the momentum necessary for a full repeal and instead focused on delaying the effective date of the tax. While this Band-Aid solution was appreciated, because the law remained on the books, employers who typically have a two to three year horizon for implementing employee benefits packages had to be wary of the tax. The bill will now move on to the Senate. We at Proficient Benefit Solutions will continue to show our support for this bill and hope to see the tax repealed as soon as possible.

In addition to Bill H.R. 748 being passed, the IRS released Notice 2019-45 expanding benefits that are covered under high-deductible health plans. This expansion includes treatments and prescription drugs used to treat certain chronic conditions. This is a huge win for the thousands of HSA account holders who suffer from chronic illnesses.

A chart showing the new preventative care benefits listed below:

Preventive Care for Specified Conditions

For Individuals Diagnosed with

Angiotensin Converting Enzyme (ACE) Inhibitors

Congestive Heart Failure, Diabetes, and/or Coronary Artery Disease

Anti-resorptive Therapy

Osteoporosis and/or Osteopenia

Beta-blockers

Congestive Heart Failure and/or Coronary Artery Disease

Blood Pressure Monitor

Hypertension

Inhaled Corticosteroids

Asthma

Insulin and other glucose lowering agents

Diabetes

Retinopathy Screening

Diabetes

Peak Flow Meter

Asthma

Glucometer

Diabetes

Hemoglobin A1c Testing

Diabetes

International Normalized Ratio (INR) Testing

Liver Disease and/or bleeding disorders

Low-density Lipoprotein (LDL) Testing

Heart Disease

Selective Serotonin Reuptake Inhibitors (SSRIs)

Depression

Statins

Heart Disease and/or Diabetes

As always, we will make sure to keep you informed with any legislation regarding your benefits plans.

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