President Bush
Comments
on HSAs
In his acceptance speech
at the Republican Convention, President Bush said, “We
will offer a tax credit to encourage small businesses and their employees
to set
up
health savings accounts, and provide direct help for low-income Americans
to purchase them.”
Federal Government
to Offer HSAs and HRAs in 2005
The Federal Office of Personnel
Management (OPM) has announced that High Deductible Health Plans (HDHPs),
Health Savings Accounts (HSAs), and Health Reimbursements Accounts (HRAs)
will be offered in 2005 under the Federal Employees Health Benefits Program.
(Click here to read the Press
Announcement.)
Events
DPI-125 Basic
Software Training
DataPath
105-HRA / Defined Contribution Concept Seminars
DataPath-COBRA
Education / Training Seminars
General
Information about DataPath Seminars
Industry
Seminars where DataPath will participate
Trade
Shows where DataPath will participate.
Event
Calendar
Informational
DataPath Websites
dpath.com
myHSAToday.com
hsa223.com
hra105.com
myResourceCard.com
idpas.com
Change0fStatus.com
DataPath Products
DataPath
223-HSA
DataPath
105-HRA
DataPath
125
DataPath
132
DataPath
COBRA
MAX
105
myResourceCard®
DataPath Web Services
my RSC.com
DNS: DataPath
Web Services
E.F.T.S. Electronic
Funds Transfer Service
Contact Info
Email Sales or call
1-800-633-3841
Email
Technical Support
or call 1-501-296-9993
About DataPath
Who
We Are
Our
Mission
Our
Vision for Tomorrow
Let's Build a Relationship!
Our Strengths!
What People are Saying about DataPath
Comments?
Suggestions?
If you have any comments on the articles in this newsletter or suggestions
for future newsletters, please email mvinson@dpath.com. We
welcome your input.
WARNING!!
Microsoft has issued a list of nearly 50 software applications and games
that may encounter problems with its Windows XP Service Pack 2 update.
(DataPath software has not been affected.)
Click
here to view the list that Microsoft has issued.
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DataPath Annual Conference:
Great Seminar! — No Hurricane!
After attending the ECFC Conference in Naples, Florida, and having it cut
short by a hurricane, everyone was holding their breath about DataPath's conference
in New Orleans. Luckily, we hit a window of good weather and, by the attendees'
comments, the seminar was a success.
To
see the comments . . .
The Role of PSPs
in the HSA Marketplace
The information in this article is taken from a speech, "Where are
HSAs Today? A Look at the Marketplace of Health Savings Accounts”,
by John Robbins, Sr., at the DataPath Annual Conference in New Orleans.
The question DataPath keeps hearing is, “What is the Role of Plan
Service Providers (PSPs) in the Health Savings Account (HSA) marketplace?” Before
answering that, let's look at the three HSA models:
Carrier as Custodian. In this model, the High
Deductible Health Plan (HDHP) insurance carrier also serves as the HSA
custodian. To the carrier, being the custodian is simply a sideline to
make the insurance more attractive.
Custodian Direct. In this model, the HSA is just
another product to sell. The HSA custodian is independent of the HDHP
carrier and provides its services directly to the Account Holder. The
custodian relies on the Account Holder to get a qualified HDHP. To the
Custodian the HSA is an individual account and not part of the “Group
Plan”.
PSP-Focused. When the PSP enters the picture,
the focus is now on service—services directly to the employer and
the employees and, indirectly, to the carrier and custodian. This model
is based on the philosophy that the employer and the employee need the
expertise of an independent PSP to ensure compliance and to ease the
administrative burden on Human Resources. It recognizes that the PSP
can offer expertise, advocacy, flexibility, management, and autonomy.
For
more information . . .
HSAtoday:
DataPath's HSA Solution
DataPath is opening up the HSA market to PSPs with its latest product,
HSAtoday, a turn-key solution that revolves around the Plan Service Provider. HSAtoday offers two
approaches to the HSA market in order to meet the unique needs of its
users:
Approach 1: HSA Administration and Certification. In
this approach the employee gains account access through myRSC.com and
can electronically make contributions, request withdrawals, and receive
monthly statements—all under the PSP's watchful eye. This way the
PSP can provide certification that the employee's contributions and the
distributions meet the IRS requirements.
Approach 2: Custodial Account Management. This approach
provides the necessary system for HSA Custodial Account Management and
Customer Service. (The system facilitating this approach will be the
first released by DataPath.)
HSAtoday gives the
PSP access to:
- A new way to earn commissions and residuals
- Easy HSA administration solutions for groups and individuals
- Immediate entry into the HSA market
- An HSA Custodian for your clients
For
more information . . .
IRS Issues Clarification on HSA Guidance
IRS has clarified that eligibility for Medicare will not prevent an individual
from being eligible for an HSA. It is only when the individual becomes
enrolled to Medicare that the individual becomes ineligible.
For
more information . . .
HSA Basics
This is the first of a series of articles on Health Savings Accounts
(HSAs). Each month will feature one aspect of the governing regulations.
Health Savings Accounts (HSAs) originated from Medicare Prescription
Drug Improvement and Modernization Act of 2003 (referred to as the Medicare
Bill). The Act created the rules for HSAs in Code § 223 with an effective
date of January 1, 2004. (Thirteen other Code sections were either also
created or amended to apply to HSAs.)
For
more information . . .
IRS Releases Final Version of HSA/Archer Reporting Forms IRS has released final versions of the following:
Form 1099-SA (Distributions from an HSA, Archer MSA, or Medicare+Choice
MSA). This form, replacing Form 1099-MSA, will be used to report total
distributions made.
Form 5498-SA (HSA,
Archer MSA, or Medicare+Choice MSA Information). This form, replacing
5498-MSA, will be used to report all contributions
received, including rollover contributions.
Instructions for completing forms.
Form 1096 (Annual Summary and Transmittal of U. S. Information Returns),
used to transmit Form 1099-SA and Form 5498-SA, was released for 2004
before the release of these forms. When completing this form, filers
should put an "X" in the box for Form 1099-MSA or Form 5498-MSA.
Watch Out for “Phishers”
There has been an increase in “consumer fraud” emails being
sent out recently. Please be aware that NO company will email you to verify
your credit card, online account, bank account, or any other personal information
online.
To
see what “Phishers” are . . .
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