Affordable Care Act Stands. What’s the Impact on Consumer Driven Plans?

By Ric Joyner, CEBS, GBA, CFCI

See webinar information below.

The Supreme Court of the United States (SCOTUS) determined today that Affordable Care Act (ACA) could stand if the mandate to buy insurance was a tax. Congress does have the authority to tax.

What didn’t stand was the Commerce Clause, allowing Congress to force Americans to purchase insurance.

Congress also cannot threaten to withhold Medicaid funds to states that do not expand their Medicaid programs to cover more of the poor. This was ruled unconstitutional. Therefore, the 26 States who started the process of suing the federal government won their case. To read the actual case notes, which are extensive, click here.

With the Affordable Care Act still in effect below are the items of note:

For Consumer Driven Plans (FSA, HRA, HSA)

  • Over the Counter Medications still require a prescription. The House of Representatives passed a bill which is now being debated in the Senate to overturn this provision of ACA. Please contact your Representative.
  • Health insurance discrimination testing is still viable using Section 105 Testing. The IRS has suspended enforcement for now.
  • Defined Contribution for health insurance is now possible. In 2014 pre-existing conditions for health insurance will no longer apply. The impact  of not having health questions for purchasing health insurance is that “in theory” employers can cancel group coverage and send employees to the exchanges to purchase insurance. The employer could then give employees money for expenses (defined contribution) and offer their employees consumer driven plans to help offset the tax consequences. We are watching this closely.

Flexible Spending Arrangements (FSA)

  • $2,500 Limit on the Health Flexible Spending Arrangement (HFSA) still stands. Please read Benefit Blog post regarding strategies on how to implement the limit.

Health Reimbursement Arrangements (HRA)

  • W2 reporting is still required
  • Contraceptives still apply to non-exempt FSAs and HRAs

eflex takes no side in the health care debate. We are excited for the future because we are a solution to rising costs by offering tax free accounts. By using eflex for your consumer driven plan you can count on us to bring you the best in service and compliance.


Affordable Care Act Stands. New Webinar. Now What? eflex Has Solutions.

Join us for this fast paced webinar on July 6th or 10th 2012. We will analyze the Supreme Court Ruling and determine what remains, what opportunities await and create action items for brokers, their clients and TPAs.

Who should attend? Brokers, their staff, TPAs, CEOs, CFOs, and HR staff.

Speakers: Ric Joyner, Co-CEO of eflex

Tom Jacobs, JD CEO of eflex

What you will learn:

  1. A tax is not a mandate and mandates turn into taxes
  2. 21 new taxes are created
  3. What remains
  4. Defined Contribution for funding health insurance is now possible
  5. New opportunities are created

The cost of the seminar is $49.00 per person. $99.00 for *unlimited seats for your staff and clients.

*When you register for the $99.00 please send us an email of the staff that are planning to attend and we will send them a link. Email:

Register here:

July 6th at 11.00 am Eastern 

July 12th at 11.00 am Eastern