New Law Signed by President Obama Eliminates Deductible Limits for Small Employer Market Health Plans

Employers Council on Flexible Compensation Heralds Repeal a Huge Victory for Consumer-Based Healthcare and Benefit Accounts

WASHINGTON, D.C. (April 2, 2014) – The U.S. Congress passed legislation and the President signed into law the “Protecting Access to Medicare Act of 2014” on April 1, 2014. The bill, which prevents double digit cuts in Medicare reimbursement to doctors from taking effect this year, includes a very important change to an Affordable Care Act provision impacting account-based plans for small employers. Section 213 of the Medicare physician payment bill eliminates deductible limits imposed under the ACA for the small employer market health plans. Section 1302(c)(2) of the ACA currently limits deductible amounts offered by small employer plans to $2,000 for individuals and $4,000 for families. The Employers Council on Flexible Compensation (ECFC) joined forces with several other organizations in a successful advocacy effort at both the state and federal levels to get the deductible limit provision repealed. “This is a real victory for consumer-based healthcare and consumer-based benefit accounts,” explains Natasha Rankin, Executive Director, ECFC. “It allows small employers to continue to provide affordable medical insurance to their employees, including flexible compensation options such as FSAs, HRAs, and HSAs. And it allows employees to set aside tax advantaged dollars to help pay for their health care out-of-pocket and deductible expenses.”