HealthPlanWire Fact Sheet September 8, 2009
Senate Finance Chairman Baucus distributed a list of possible compromises over the weekend that includes a cap on FSA contributions at $2,000, but allows relatively generous insurance coverage for HSA-eligible policies. The new proposal is likely to be heavily-supported by CDH backers in all most all cases:
n Health FSA contributions are limited to $2,000 a year.
n Over-the-counter medicines allowed in FSA/HRA/HSAs.
n Separate individual and small group exchanges (long phase-in)
n Cross-border insurance authorized with state approval
n State-level exchanges, not one single federal exchange
n High-deductible plans authorized (65% MCC level)
n Very-high deductible plan okay for ‘young invincibles’
n All “out-of-pocket limits for all benefit categories would be tied to current HSA standards… the out-of-pocket limit for those below 300% of poverty is capped at a lower level than the HSA amount. For those between 100-200% of FPL, the out-of-pocket maximum is equal to one-third of the HSA out-of-pocket limit. For those between 200-300% of FPL, the out-of-pocket maximum is equal to one-half of the HSA out-of- pocket limit… Employers must provide first dollar coverage for prevention services (except where value-based insurance design is used), however, and cannot have a maximum out-of- pocket limit greater than that provided by the standards established for Health Savings Accounts (HSAs).
n Low-income cost-sharing subsidy level also tied to HSAs maximums for out-of-pocket costs ($5,950/11,900)