GAMA International Journal November-December 2013 - 11

Wash ington Watch

What's Hot
Why It Matters
What will or will not be prohibited or acceptable under the Affordable Care Act is
extremely important for advisors to be able to share with clients. Finding and paying
for the right health coverage can be confusing, and the health producer plays an
important role in guiding the customer to the correct and affordable coverage. On
another front, failure to agree on a unified budget would mean Congress would again
have to struggle with the government funding and borrowing-limit issues that led to the
recent 16-day government shutdown and debt-limit crisis.
IRS Offers Guidance on Affordable Care Act Impact on HRAs, FSAs
On Sept. 13, the IRS and the Department of Labor (DOL) released Notice 2013-54,
guidance that makes it clear that health reimbursement arrangements (HRAs) and
flexible spending accounts (FSAs) do not violate the Affordable Care Act's (ACA's)
prohibition against annual dollar limits. Notice 2013-54 also shows that FSAs and
HRAs do not violate the rule that requires qualified health insurance to cover certain
preventive services without charging copayments.
The IRS and DOL guidance provides that a group health plan, including an HRA,
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Just past midnight on Oct. 17 President Obama signed into law H.R. 2775, a
,

with individual market coverage for the purposes of the ACA's annual dollar-limit
prohibition or for its preventive services requirements.
Notice 2013-54 is effective for plan years beginning on or after Jan. 1, 2014, but
the notice says taxpayers may rely on it for all prior periods.
Short-Term Government Funding, Debt-Limit Suspension Enacted Into Law
short-term resolution to the government shutdown that began on the start of the fiscal
year on Oct. 1, and to the Treasury Department's need to borrow money to avoid
default.
The new resolution does the following:
■

Funds the federal government through a continuing resolution until Jan. 15

■

Raises the national debt limit until Feb. 7 and allows the Treasury to use
"extraordinary measures" should Congress not raise the debt limit to avoid a
default

■

Requires bicameral budget negotiations that must be concluded by Dec. 13

■

Requires certification that individuals receiving subsidies for insurance
purchased on the exchanges meet the required income levels

On Oct. 16, the Senate approved the measure by an 81-18 vote. The House
followed suit, with a 285-144 vote.
H.R. 2775 mandates a House-Senate conference committee to resolve the
differences between the FY 2014 House and Senate spending plans. That conference
committee will tackle the longer-term spending and other fiscal issues that will lead to
government funding for the balance of FY 2014. The new law requires that the
conference committee finish its work by Dec. 13, 2013.
©

2013 naiFa. excerpted with permission.
november/december 2013

11
GAMA International Journal November-December 2013

Table of Contents for the Digital Edition of GAMA International Journal November-December 2013
