Health and Welfare Plans

Health Savings Accounts — the New Tax-Favored Vehicle for the Payment of Health Care Expenses

On December 8, 2003, President Bush signed into law the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (the “Act”). Title XII of the Act, entitled “Tax Incentives for Health and Retirement Security,” includes provisions which amend the Internal Revenue Code (“IRC”) to provide the basis and favorable tax treatment for Health Savings Accounts […]

Electronic Cards Permitted for Health Flexible Spending Accounts and Health Reimbursement Arrangements

IRS Revenue Ruling 2003–43 provides guidance to plan sponsors that offer participants in Health Flexible Spending Accounts (“Health FSAs”) and Health Reimbursement Arrangements (“HRAs”) the ability to use electronic payment cards to pay service providers at the point of sale. The electronic card may be a debit card or a credit card. However, the following […]

California Mandates Pay or Play Health Coverage

On October 5, 2003, Governor Davis signed Senate Bill 2, the “Health Insurance Act of 2003” (“SB2”). This new law creates a purchasing pool to provide health care coverage “for all working Californians and their families that is not tied to employment with an individual employer.” The law requires employers either to contribute to the […]

IRS Permits Reimbursement for Certain Non-Prescription Medicines and Drugs

The Internal Revenue Service (“IRS”) recently issued Revenue Ruling 2003–102 which allows a Health Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA) to reimburse participants for expenses incurred for eligible non-prescription medicines and drugs, subject to certain limitations. Revenue Ruling 2003–102 states that Internal Revenue Code (“Code”) section 105 (which provides that certain […]

Page 10 of 10 1 8 9 10