Smart Benefits: Flexible Spending Accounts Get More Flexible
Email to a friend
Permalink
Monday, November 04, 2013
Amy Gallagher, GoLocalWorcester Business/Health Expert
Flexible Spending Accounts (FSAs) have been used by consumers for many years to help pay for out-of-pocket medical expenses.
Flexible Spending Accounts (FSAs) have been used by consumers for many years to help pay for out-of-pocket medical expenses. Known for their pre-tax advantages, these savings vehicles have provided convenience and savings to millions. But there’s always been one big drawback: the “use it or lose it” feature, which means that if employees don’t spend the entire amount they set aside, they lose the money. That’s all about to change.
IRS Reverses Use it or Lose It
The IRS announced last Thursday that it will now allow consumers to carry forward any unused balance up to $500 from the current plan year and apply it in the following plan year.
Effective Immediately
The change is effective immediately for current plan years in force now. And the timing couldn't be better as many consumers are bracing for the increased costs of healthcare reform, including higher out-of-pocket limits being set for most health plans.
FSA Contribution Limits Unchanged
Employees can still save up to $2,500 per plan year through their FSA; the $500 carryover amount is allowed in addition to the maximum annual contribution limit.
Leveling the CDHP Playing Field
The IRS’ announcement will put FSAs more on par with similar vehicles known as Health Savings Accounts (HSAs), which allow much more money to be saved and carried over from year to year.
Employer Requirements
Don’t forget: employers who want to offer this enhanced feature must amend their cafeteria plan documents to meet the new conditions of this law before doing so.
Amy Gallagher has over 21 years of healthcare industry experience guiding employers and employees. As Vice President at Cornerstone Group, she advises large employers on all aspects of healthcare reform, benefit solutions, cost-containment strategies and results-driven wellness programs. Amy speaks regularly on a variety of healthcare-related topics, and is often quoted by national publications on the subject matter. Locally, Amy is a member of SHRM-RI, the Rhode Island Business Group on Health, and the Rhode Island Business Healthcare Advisory Council.
Related Slideshow: Check Out The Grades: Massachusetts Hospitals Report Card
A recent survey released by The Leapfrog Group assigns a Hospital Safety Score, using the report card system of A to F to each of the hospitals in Rhode Island. These grades are based on expert analysis of injuries, infections and errors that cause harm or death during a hospital stay.
Let's see how each of Massachusetts' hospitals were graded from highest to lowest:
Prev
Next
Addison Gilbert Hospital
Gloucester, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Anna Jaques Hospital
Newburyport, RI
Fall 2013 Grade: A
Spring 2013 Grade: B
Prev
Next
Baystate Franklin Medical Center
Greenfield, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Baystate Medical Center
Springfield, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
(Photo: John Phelan, Wikimedia)
Prev
Next
Berkshire Medical Center
Pittsfield, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Beth Israel Deaconess Hospital Milton
Milton, MA
Fall 2013 Grade: A
Spring 2013 Grade: B
Prev
Next
Beth Israel Deaconess Medical Center
Boston, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Beverly Hospital
Beverly, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Boston Medical Center
Boston, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Brigham and Women's Hospital
Boston, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Brigham and Women's Faulkner Hospital
Boston, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Cambridge Health Alliance: Cambridge
Cambridge, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Cambridge Health Alliance: Whidden
Everett, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Cape Cod Hospital
Hyannis, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
(Photo: Davee, Flickr)
Prev
Next
Carney Hospital
Dorchester, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Charlton Memorial Hospital: Southcoast Hospitals Group
Fall River, MA
Fall 2013 Grade: A
Spring 2013 Grade: B
Prev
Next
Emerson Hospital
Concord, MA
Fall 2013 Grade: A
Spring 2013 Grade: B
Prev
Next
Hallmark Health System: Lawrence Memorial Hospital of Medford
Medford, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Hallmark Health System: Melrose-Wakefield Hospital
Melrose, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Harrington Memorial Hospital
Southbridge, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Holy Family Hospital
Methuen, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Jordan Hospital
Plymouth, MA
Fall 2013 Grade: A
Spring 2013 Grade: C
Prev
Next
Lahey Hospital and Medical Center
Burlington, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Leonard Morse Hospital
Natick, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Lowell General Hospital
Lowell, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Marlborough Hospital
Marlborough, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Mercy Medical Center of Springfield
Springfield, MA
Fall 2013 Grade: A
Spring 2013 Grade: C
Prev
Next
Merrimack Valley Hospital
Haverhill, MA
Fall 2013 Grade: A
Spring 2013 Grade: C
Prev
Next
Framingham Union Hospital
Framingham, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Milford Regional Medical Center
Milford, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Morton Hospital
Taunton, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Mount Auburn Hospital
Cambridge, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Nashoba Valley Medical Center: A Steward Family Hospital
Ayer, MA
Fall 2013 Grade: A
Spring 2013 Grade: B
Prev
Next
Newton-Wellesley Hospital
Newton, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Noble Hospital
Westfield, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
North Shore Medical Center - Union Hospital
Lynn, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Quincy Medical Center
Quincy, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Signature Healthcare Brockton Hospital
Brockton, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
South Shore Hospital
South Weymouth, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Steward Good Samaritan Medical Center, Inc.
Brockton, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
St. Luke's Hospital: Southeast Hospitals Group
New Bedford, MA
Fall 2013 Grade: A
Spring 2013 Grade: B
Prev
Next
Steward Norword Hospital
Norwood, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Steward St. Anne's Hospital
Fall River, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Steward St. Elizabeth's Medical Center
Boston, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Sturdy Memorial Hospital
Attleboro, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
The Cooley Dickinson Hospital
Northampton, MA
Fall 2013 Grade:
Spring 2013 Grade:
Prev
Next
Tobey Hospital: Southcoast Hospitals Group
Wareham, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Wing Memorial Hospital & Medical Centers
Palmer, MA
Fall 2013 Grade: A
Spring 2013 Grade: A
Prev
Next
Beth Israel Deaconess Hospital: Needham
Needham, MA
Fall 2013 Grade: B
Spring 2013 Grade: A
Prev
Next
Falmouth Hospital
Falmouth, MA
Fall 2013 Grade: B
Spring 2013 Grade: C
Prev
Next
Holyoke Medical Center
Holyoke, MA
Fall 2013 Grade: B
Spring 2013 Grade: A
Prev
Next
Lawrence General Hospital
Lawrence, MA
Fall 2013 Grade: B
Spring 2013 Grade: B
Prev
Next
Massachusetts General Hospital
Boston, MA
Fall 2013 Grade: B
Spring 2013 Grade: B
Prev
Next
North Shore Medical Center: Salem Hospital
Salem, MA
Fall 2013 Grade: B
Spring 2013 Grade: B
Prev
Next
Saints Medical Center
Lowell, MA
Fall 2013 Grade: B
Spring 2013 Grade: B
Prev
Next
St. Vincent at Worcester Medical Center
Worcester, MA
Fall 2013 Grade: B
Spring 2013 Grade: A
Prev
Next
Tufts Medical Center
Boston, MA
Fall 2013 Grade: B
Spring 2013 Grade: A
Prev
Next
Winchester Hospital
Winchester, MA
Fall 2013 Grade: B
Spring 2013 Grade: B
Prev
Next
HealthAlliance Hospital
Leominster, MA
Fall 2013 Grade: C
Spring 2013 Grade: B
Prev
Next
North Adams Regional Hospital
North Adams, MA
Fall 2013 Grade: C
Spring 2013 Grade: A
Prev
Next
U Mass Memorial Medical Center
Worcester, MA
Fall 2013 Grade: C
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
U Mass Memorial Medical Center: Memorial Campus
Worcester, MA
Fall 2013 Grade: C
Spring 2013 Grade: C
Prev
Next
Athol Memorial Hospital
Athol, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Baystate Mary Lane Hospital
Ware, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Boston Children's Hospital
Boston, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Clinton Hospital
Clinton, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Dana-Farber Cancer Institute
Boston, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded due to lack of publicly available data
Prev
Next
Fairview Hospital
Great Barrington, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Martha's Vineyard Hospital
Oak Bluffs, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Massachusetts Eye And Ear
Boston, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
Nantucket Cottage Hospital
Nantucket, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Prev
Next
New England Baptist Hospital
Boston, MA
Fall 2013 Grade: Not Graded*
Spring 2013 Grade: Not Graded*
*Not graded because the hospital did not respond to Leapfrog's voluntary survey
Related Articles
Enjoy this post? Share it with others.
Email to a friend
Permalink
Follow us on Pinterest Google + Facebook Twitter See It Read It