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Monday, Aug 31 2015

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Flexible Spending Accounts Might Vanish When 'Cadillac Tax' Kicks In

The tax on high-cost health insurance plans, set to begin in 2018, is also of concern for the writers union, which is seeking an exemption. In other health law news, Connecticut pushes back on insurers' premium hike requests while recent changes to the health coverage provided to U.S. Olympians bring it in line with federal requirements.

A popular middle class tax benefit could become one of the first casualties of the Affordable Care Act鈥檚 so-called Cadillac tax, affecting millions of voters. Flexible spending accounts, which allow people to save their own money tax free for everything from doctor鈥檚 co-pays to eyeglasses, may vanish in coming years as companies scramble to avoid the law鈥檚 40 percent levy on pricey health care benefits. (Faler, 8/31)

The union representing thousands of film, television and digital media writers is seeking an exemption for all unions from the Affordable Care Act鈥檚 鈥淐adillac tax鈥 on high cost health plans. In a letter to the Department of Treasury and Internal Revenue Service on Thursday, the Writers Guild of America East argued that health care plans negotiated under collective bargaining agreements should be exempted from the tax on high cost plans, which takes effect in 2018. (Chasan, 8/28)

Most insurance companies selling health plans in the state鈥檚 individual market will get to raise customers鈥 premiums in 2016, but not by as much as they proposed, and one major carrier will have to lower its rates, according to decisions released by the Connecticut Insurance Department Saturday. (Levin Becker, 8/29)

America鈥檚 Olympians now have officially qualifying health insurance, after the federal government and the U.S. Olympic Committee reached an agreement last week on the status of their coverage. That news may come as a surprise to some of the 850 athletes and 225 dependents enrolled in the special health plan through USOC, who already had been receiving an array of health benefits under it. (Radnofsky, 8/29)

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