IRS issues guidance on medical savings account definition of high-deductible health plans

Article Abstract:

The IRS has issued Revenue ruling 97-20 to clarify the deductibility level requirements for high-deductible health insurance under IRC section 220. Individuals establishing medical savings accounts must be covered by high-deductible health insurance. Section 220 identifies deductible levels for individuals and families that will qualify as high. In the ruling, the IRS found that a plan in which coverage was trigger by exceeding either the family deductible of $3,000 or the individual deductible of $1,500 did not qualify as a high-deductible plan.

Medical savings accounts

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IRS publishes coordinated issue paper on retroactive adoption of self-insured accident and health plans

Article Abstract:

The IRS stated in a coordinated issue paper (CIP) that employees must include in their gross income medical expense reimbursements paid and deducted under IRC section 162(a) by their employers. The issue arises when employers create new plans which comply with IRC section 105(b) and reimburse employees for health and accident self-insurance expenses prior to the employer-plan adoption.

Employee Benefits & Services, Taxation, Finance, Human resource management, Employee benefits, Self-insurance, Self insurance, Accident insurance

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HIPAA and Newborns' and Mothers' Health Protection Act interim regulations issues

Article Abstract:

Three government agencies' joint interim regulations concerning the length of hospital stays required to be covered by health plans for individuals or groups are discussed. The guidance expands upon rules enacted in the Health Insurance Portability and Accountability Act of 1996 and the Newborns' and Mothers' Health Protection Act of 1996.

Tax Law, Public Finance Activities, Hospital utilization, Hospital stays

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