Some of the Provisions of the Health Care Bill – Severely Limits HSA/Section 125

IF you have participated in Section 125 plans, also known as cafeteria plans – take a look.

I have now received this info from several sources.

You are now limited to $2,500 a year in to a cafeteria plan as of 2013. In future years – this will index for CPI, not actual inflation in Medical costs.

If medical costs continue to spiral – this will actually be a net loss. In addition, limiting people to $2500 a year is actually a tax increase for the 20% of Section 125 participants who do currently contribute more than $2500 a year.

In addition – there are regulations surrounding premiums. Sounds good, right?

Using Massachusetts as an example – their Health Insurance department is refusing to allow participating insurance companies to raise rates. This will force those carriers to cease operations in Ma if allowed to stand.

And guess what? The only Insurance carrier left will be the State.