4 Point Compass- Fall 2022

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We are committed to providing you quarterly updates as they relate to health care and best practices.  Here is our 4 Point Compass for Fall 2022: 

BCBSIL 2023 Member Rewards Program – The Member Rewards program, which will be added to most BCBSIL groups in 2023, offers cash rewards to PPO/HSA members when they shop for certain medical procedures/services (for example, an MRI) and select a low-cost, reward-eligible provider (as opposed to a more expensive provider).  Rewards are based on a member’s location and procedure, as well as the average cost of the procedure.  If a member qualifies and follows the process, they will receive a check in the mail that can range from $25 to $500 per procedure, about 6 weeks after the claim has been paid.  BCBSIL is adding this enhancement to groups based on size:  small groups (typically those employers with less than 50 employees) will automatically receive this enhancement on their 2023 renewal date; Mid-Market groups (those with ~50-150 eligible employees) will automatically receive the enhancement on their renewal date on or after 7/1/23; and Large groups (151+ employees) can choose to add at renewal. 

2023 HSA & FSA Contributions Limits – The IRS has announced the 2023 inflation-adjusted amounts for health savings accounts (HSAs) and flexible spending accounts (FSAs) as determined under the Internal Revenue Code.  The 2023 annual limit on HSA contributions for an individual with self-only coverage under a high deductible health plan (HDHP) is $3,850 (up from $3,650 for 2022), and family coverage is $7,750 (up from $7,300 for 2022).  The annual dollar limit on employee contributions to employer-sponsored healthcare flexible spending arrangements (FSA) is increased to $3,050 (up from $2,850 in 2022), and the maximum carryover amount is increased to $610 (up from $570 in 2022).  It is worth noting that health savings accounts continue to gain more interest, as one survey notes that consumers had about 32 million total HSAs by the end of 2021, an annual increase of 8%.

ACA Affordability Threshold Change for 2023 – The IRS has also announced that employer-sponsored health coverage will satisfy the ACA “affordability test” for large employers in the 2023 year if the employer offers a Single coverage option that does not exceed 9.12% of an employee’s household income.  This is significantly lower than the 2022 rate of 9.61%.  To put the new 2023 number in perspective for a $13/hour worker who works 30 hours a week, an applicable large employer (using the Rate of pay safe harbor) charging more than $154 per month for their least expensive single medical plan may be penalized under the affordability test.  If you need help making sure your medical plan meets these requirements, please reach out to your SI Account Executive. 

Looking to Enhance Your Benefit Offerings? – In the wake of the Great Resignation, many employers are looking to offer more benefit options to stay competitive when hiring in their industry.  Further motivating this idea is the fact that many insurance carriers give “package discounts” to employers who purchase additional lines of coverage.  Some examples of this are adding the traditional lines of Dental, Vision, Additional Life Insurance, & Short/Long Term Disability, as well as the newer “Worksite products” (i.e. Accident, Critical Illness, or Hospital Indemnity insurance) that are individually owned and paid for by the employee, but offered via the employer.  If you would like more information about adding additional plans, feel free to contact your Stumm service team to discuss further and have a proposal put together for you.