Benefits and Compensation

Health Reform Means Different Things for FSAs and HSAs

There is some persistent confusion over what the implementation of the health reform law means for health flexible spending accounts and health savings accounts. The short answer is that with one exception, employers and plan administrators must follow different steps for health FSAs and HSAs.

Understanding these steps is crucial, because the time to prepare plan documents and policies for the next plan year is fast approaching — especially if a plan does not operate on a calendar year and its plan year begins before Jan. 1. To assist in employers and plan administrators in meeting their obligations, here is a recap of what implementation of the Patient Protection and Affordable Care Act means — or does not mean — for health FSAs and HSAs.

For the full story, go here.

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