Newly Effective Limitations on HSAs and FSAs Take Away Patients' Flexibility, Choice, and Cost Savings

WASHINGTON, Jan. 3 --  
 The office of Sen. Kay Bailey Hutchison, R-Texas, issued the following news release:

 Senator Kay Bailey Hutchison (R-Texas) continued to voice her opposition to the new health care law's restrictions on health savings accounts (HSAs) and flexible spending accounts (FSAs) that went into effect on January 1, 2011.

 Sen. Hutchison, who has introduced legislation to repeal these limitations on HSAs and FSAs, vowed to continue to fight to restore patients' access to choose health care plans that suit their individual and family needs.

"Despite the popularity of HSAs and FSAs, the health care law places significant limitations on these plans. As of January 1, the health law now prohibits individuals from using either HSA or FSA funds to purchase over-the-counter medication unless they have a prescription from their doctor. This will deny patients the freedom to use their benefits for non-prescription purchases without the added costs of unnecessary visits to their physicians' offices," Sen. Hutchison said.

The new health care law will also limit patients' cost savings by placing an arbitrary cap of $2,500 on flexible spending accounts. Prior to enactment of the health care bill, there was no federal cap that an employer had to comply with in order to offer FSA benefits to employees.

 Sen. Hutchison introduced the Patients Freedom to Choose Act during the 111th Congress, and she will work to push the legislation forward in new session.

"By placing limitations on HSAs and FSAs, the health reform law undermines the fundamental benefits of flexibility, choice, and cost savings. My legislation would repeal the $2,500 limit on FSAs, and would allow over-the-counter drugs to be purchased through these accounts," Sen. Hutchison said.

 HSAs and FSAs are innovative and popular health benefits that both large and small employers offer to their employees. These accounts allow individuals to set aside a certain amount of money each year on a pre-tax basis in order to pay for various healthcare expenses. Because employee contributions are made before they are taxed, these accounts are another way to ease Americans' growing tax burden.

 America's Health Insurance Plans recently released a report that shows over 10 million Americans now are enrolled in HSAs. In addition, over 35 million people have FSAs, and 85 percent of all large employers (those with over 500 employees) offer them as a benefit to their employees.

 Senator Hutchison's legislation has received wide support from the business community. Some of the letters of support are listed below:

National Federation of Independent Business 

U.S. Chamber of Commerce

National Retail Federation

Employers Council on Flexible Compensation

The Department of Health and Human Services (HHS) announced new plan choices for people enrolling in the Pre-Existing Condition Insurance Plan (PCIP) for 2011.  These options will give current and future enrollees a greater number of coverage choices and allow people to select the plan that best meets their needs.  The new options will be offered in a three-tiered structure beginning January 1, 2011, and will be available in States where the program is federally administered through the Office of Personnel Management.  
 

These choices build on the current single plan option: experience with the program has provided valuable information that has allowed for the creation of new and improved options.
 

The federally administered program is available in 23 States and the District of Columbia.  To find out if your State's PCIP is federally administered please visit: http://www.healthcare.gov/law/provisions/preexisting/index.html
 

PCIP provides Americans living with such conditions as cancer, diabetes, or heart disease the opportunity to obtain insurance coverage.  The program covers a broad range of health benefits and is designed as a bridge for people with pre-existing conditions who cannot obtain health insurance coverage in today's private insurance market.  In 2014, all Americans - regardless of their health status - will have access to affordable coverage either through their employer or through a new competitive marketplace, and insurers will be prohibited from denying coverage to anyone based on the state of their health.

 For more information about eligibility and benefits please visit www.pcip.gov.
 

Expanded Plan Options in 2011

In 2010, people enrolled in the federally administered PCIP program were offered one plan.  Beginning in 2011, such enrollees will be able to choose between three plan options:  the Standard Plan, the Extended Plan and the Health Savings Account eligible plan.  In addition, families will be able to enroll their eligible children in PCIP at child-only rates.  

To Research Benefits, find rates, find providers, and review frequently asked questions please visit: http://www.pciplan.com
 

Wellness Tip of the Month

Did you make health and wellness part of your New Year's Resolutions?  If so, you may feel that finding the balance between a healthy work and personal life can be quite the challenge.  Today I'm here to share a few healthy tips I've learned from my time involved in the program here at Hilton Head Health that can easily be applied to the workplace:  
 
If you can, sneak in a workout first thing in the morning.  After a long day of work, with errands and commitments looming, an afternoon sweat session is usually the first to go.  Promise yourself 30 minutes in the morning to get in your cardio or strength training.  
 
Invest in a large water bottle.  If you don't have a water fountain near, a large water bottle is a necessity.  Drink water instead of hitting up the soda machine!  It will also help you feel full, keeping 'boredom' hunger at bay.
 
Stock your desk with healthy snacks.  A great way to keep your metabolism going and prevent an afternoon crash is to eat a healthy snack in between meals.  Fresh fruit, low-fat cheese sticks, dried fruit mix, or carrot sticks and hummus are just a few great snack ideas.  It's when you aren't prepared is when you go wandering for the vending machine.  
 
Bring your lunch.  Packing your lunch is great for controlling your portions, but also saves you money!  Sandwiches, leftovers from last night's dinner, wraps, salads, and soups can be easily packed up.  Lunches that include some lean or low-fat protein along with carbohydrates will keep your body fueled for the afternoon.  
 
Walk around as much as possible.  If you have a question, instead of emailing or calling your co-workers walk down to their office.  Not only does it usually get done quicker, it gets you up and moving.  Take the stairs rather than the elevator.  If you bring your lunch, you can also spend 15 - 20 minutes on a quick walk.  
 
Be prepared.  This is the most important part of making any healthy lifestyle plan work.  At first it may take a little more time planning, but once you get the hang of it, it becomes second nature.  It only takes about 15 minutes the night before to pack your gym clothes, lunch, water bottle and snacks - and it is definitely worth it in the long run!
 
Staying healthy and fit is tough - especially in the workplace.  Visit our blog at www.h3daily.com for quick and healthy meal ideas, fitness tips and daily wellness articles.  
 
Cheney Maddox is responsible for H3 Direct, a corporate wellness program, facilitated by Hilton Head Health (H3), designed to take the inspiration of H3's Healthy Lifestyle™ program, delivered to your door.  It's not too late to begin a program for your company in 2011 - call 785-3919 for information about how you can invest in your employees' health in the New Year for less than a quarter a day!