When you set up a Health Savings Account with NueSynergy, we ask you to select a beneficiary. You should choose carefully because this will determine what happens to your HSA when you pass away. The rules are explained in IRS publication 969 (page 9).

If your spouse is the designated beneficiary

If your spouse is the designated beneficiary of your HSA, the account will be treated as your spouse’s HSA after your death. This means that your spouse will be able to use the funds for eligible medical expenses even if he or she does not have an HSA-qualified health plan. Of course, only eligible individuals can contribute to an HSA, but anyone with an HSA, including your spouse after your death, can spend the funds whether they’re eligible or not.

If your spouse is not the designated beneficiary

The account stops being an HSA, and the fair market value of the HSA becomes taxable to the beneficiary in the year in which you die.
If your estate is the beneficiary, the value is included on your final income tax return.

The amount taxable to a beneficiary other than the estate is reduced by any qualified medical expenses for the decedent that are paid by the beneficiary within 1 year after the date of death.

It’s that time of year again. Open enrollment is around the corner. For many companies, this is the best time to review the health care needs of the organization. And with unemployment rates nearing historic lows, many businesses are enhancing their benefits package to recruit and retain top talent.

As some of you may be aware, enrollment in Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs) has been on the rise over the last several years. Participation in flex-benefit plans is part of a growing trend for employees looking for perks at work. This holds especially true for Millennials, the largest generation in today’s workforce.

This is where NueSynergy can help.

NueSynergy offers a fully integrated suite of administration services, managed by subject matter experts with an average of 10 years direct industry experience. Our administration services include:

Flexible Spending Arrangements
Health Savings Accounts
Health Reimbursement Arrangements
COBRA
Direct Bill
Consolidated Billing

Further, NueSynergy has the in-house expertise and integrated technology to help employers maximize operational efficiencies and control rising health care costs. Our commitment to outstanding client service ensures employees have the tools and resources to manage the financial aspect of their health care. By making innovations such as insurance carrier integration, single platform administration as well as single debit card and mobile app access to all plans part of our standard solution, we have quite simply raised the bar in benefit value and overall experience.

Open enrollment and beyond

In today’s modern workforce, it’s critical for employers to recognize the role that engaged employees play in driving sustainable company growth and success. By taking the time to educate and engage with employees about their benefits package, employers can better identify what programs and services employees and their families value the most. By taking this approach, employers better position themselves to create a healthier and more productive workforce.
So if you’re looking to add flex-benefits to your company’s health plan, or need help effectively communicating and educating your employees about their available benefits, please give us a call or send us an email! We’re here to help.

Please contact us today at sales@nuesynergy.com or 855.890.7239 to schedule your consultation today.

It may be difficult to believe, but open enrollment season is here again. And sure as the sun rises, many clients are demanding enhanced benefits at a zero-cost increase for the new year.

When it comes to administering services such as COBRA, FSAs, HRAs and HSAs, all third party administrators are the same, right? Wrong! Over the last two decades, NueSynergy has separated itself from the competition by offering personalized, knowledgeable service and innovative technology-based solutions that have helped raise the bar in benefit value and overall experience. We call it the NueSynergy Difference.

If you have any clients that are looking to enhance their benefits at a zero-cost increase, let’s schedule a 10-minute call to discuss how we can work together to accomplish this task.

Contact us at 855.890.7239 or sales@nuesynergy.com to schedule your consultation today.

Congress is once again considering the possibility of expanding access to HSAs and how those funds can be used. As you may be aware, two bills addressing HSAs passed the U.S. House of Representatives in late July and are now sitting in the Senate.

As of this writing, the two pieces of legislation, H.R. 6199 and H.R. 6311, haven’t been assigned to committee in the Senate. And with the midterm elections looming, both may fall victim to calendar deadlines. Although their future is uncertain at best, H.R. 6199 and H.R.6311 provide an insight into the future of HSAs.

So what does that future look like? Today we’ll break down the top eight ways H.R. 6199 would impact HSA owners, if enacted.

H.R. 6199 would

add increased flexibility by allowing a High-Deductible Health Plan (HDHP) to provide families up to $500 in pre-deductible coverage for non-preventive care;
add direct primary care arrangements to the types of coverage an individual can have;
give employers the flexibility to offer various free or discounted medical services, either onsite or at a retail clinic, and HDHP-covered employees who receive those services would still be HSA-eligible;
allow a person with HDHP coverage to contribute to an HSA, even if their spouse has an FSA, as long as the FSA doesn’t reimburse any expenses for the HDHP-covered spouse;
allow employees to transfer their HRA and/or FSA balances to an HSA, if the employee enrolls in an HDHP and establishes an HSA;
allow HSA funds to be used to buy over-the-counter medications without a prescription;
allow HSA funds to be used to purchase menstrual care supplies;
allow families to use up to $1,000 per year in HSA funds to pay for gym memberships, as well as safety equipment and participation/instruction fees for “qualified physical activities.”
While it’s unlikely the Senate will move on either piece of legislation this year, HSAs continue to skyrocket in popularity as health insurance premium increases have become the new normal in this uncertain market.

HSAs also remain popular because consumers are looking for more choices and more ways to save. For example, HSAs offer triple tax savings. This means any HSA contributions can be made either pre-tax or are tax deductible at year-end. Any interest income or earnings on investments tied to an HSA remains tax free. Lastly, as long as the HSA funds are used to pay for qualified health care expenses then no taxes will be charged on distributions.

Moving forward, we’ll continue to track both pieces of legislation and provide updates as necessary. In the meantime, please check out this article about H.R. 6311 if you’re interested in learning more about the bill we were unable to cover in today’s post.

Given the growth and geographical expansion of NueSynergy, the company has created a Western Regional Director position that will be held by Brett Flanagan. Based in Phoenix, AZ, Brett will be responsible for retaining existing clients and developing new partners within the region.

Brett Flanagan is a respected expert with over 20 years experience in the benefits administration space. Always driven to succeed, Brett expanded his previous employer from a regional to national player – largely thanks to his tremendous understanding of employee benefits.

“This is an exciting time for NueSynergy and Brett is a great fit for this position. I’m confident his experience, along with the relationships he’s developed over the past two decades, will help grow our client base and drive our company goals. We are delighted to have him on board,”” said Josh Collins, president of NueSynergy.

Since 1996, NueSynergy has been an innovative leader in providing full-service administration of consumer-driven and traditional account-based plans. The company has grown into one of the largest benefit account administrators providing Health Savings Accounts (HSA), Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA); in addition to COBRA, Direct Premiums Billing and Consolidated Billing services to employers of all sizes and sectors including state and local governments as well as private and publicly traded companies.

With the addition of Brett, NueSynergy will be able to offer the following administrative services to the Western United States:

– Flexible Spending Arrangements
– Health Savings Accounts
– Health Reimbursement Arrangements
– COBRA
– Direct Bill
– Consolidated Billing

NueSynergy will also bring into the region its in-house expertise and integrated technology to help employers maximize operational efficiencies and control rising health care costs. The company’s commitment to outstanding client service ensures employees have the tools and resources to manage the financial aspect of their health care. With over 4 million benefits accounts administered on the company’s platform, NueSynergy’s investment in industry leading technology ensures that clients will always have secure and convenient access to their benefits account.

NueSynergy’s core purpose is helping people protect their quality of life and it is driven by a desire to provide superior customer service, while performing ethically and professionally. With the ever changing regulatory landscape, the company’s core purpose has continued to evolve as focusing on helping customers truly understand the value of their benefits account, while striving for even greater industry and product expertise.

The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a complex and detailed law protecting employees and qualified beneficiaries once they have been removed from their group health coverage due to a qualifying event. Despite its complexity, employers, employees and plan administrators are still accountable for staying in compliance with it.

One important aspect of staying compliant is awareness of the law’s key requirements and deadlines. With several various requirements and each requirement having a specific time span, saying it can be difficult to follow is an understatement. This a quick and easy guide to some basic COBRA compliancy requirements you may have overlooked.

First and foremost, we have listed qualifying events and which entity is responsible for notifying the plan administrator in each circumstance:

The employer is responsible for notifying the plan administrator within 30 days if the qualifying event is employee death, termination, reduction of hours, eligibility for Medicare or bankruptcy of a private-sector employer.

OR

The qualified beneficiary is responsible for notifying the plan administrator if the qualifying event is divorce, legal separation, or a change in dependent status. The time limit for this notice is determined by the plan administrator, but must be at least 60 days.

Furthermore, we have outlined 5 additional key requirements and their deadlines to make your COBRA compliancy as easy as possible.

After being notified of the qualifying event, the plan administrator has 14 days to provide participants with an election notice.
You must provide the covered employee and their spouse a general notice informing them of their COBRA rights within the first 90 days of the coverage.

The plan must provide a Summary Plan Description to the employee within 90 days of them participating in the plan.

The qualified beneficiaries must have a minimum of 60 days to choose to elect COBRA or not.

COBRA offers a maximum coverage time of 18 months, 29 months, or 36 months depending on the qualifying event. Special circumstances, like disability or a second qualifying event, can extend an 18 month coverage.

Outside of meeting deadlines, there are other specific standards that must be met for continuation coverage. For example:

The provided coverage must be identical to the plan the qualified beneficiaries were covered under prior to COBRA.

In the case the employee is required to pay for the continuation coverage, the cost can only be 102% of the full cost of the plan. The additional 2% may be charged as an administration fee.

If the coverage is terminated early, the plan must give notice to the plan participant as soon as possible and the notice must provide more detailed information on the termination like when it will be terminated and why.

Now you have the basics to start ensuring COBRA compliancy in your business practices. For more specific information or further questions, the Department of Labor produced a guide for employers dealing with COBRA that you can find here.