High-deductible health plans are replacing many traditional health plans, SHRM's 2019 Employee Benefits survey shows. This year, 59 percent of employers offered a HDHP linked to a savings/spending account, and 56 percent offered an HSA, according to the survey, which received 2,763 responses among a random sample of Society for Human Resource Management (SHRM) members.

The FSA limit on carrying over unspent funds at the end of the year creates challenges for individuals who, for one reason or another, cannot accurately forecast the coming year’s medical expenses. Let's recall that in 2013, the IRS softened the “use it or lose it” rule to allow a $500 carryover per year. Directing the Secretary of the Treasury to increase the current $500 carryover allotment is welcome news to individuals who do not always exhaust their FSA accounts as anticipated. 

Benefit plan limits have changed for the new calendar year. Here's a quick view:

• 401-k Limits: Pre-tax contributions: $19,500 (up $500 from 2019). Catch-up contributions: $6500 (up $500 from 2019).

• Health Savings Accounts (HSA's) Limits: Pre-tax contributions - Single coverage: $3550 (up $50 from 2019). Family coverage: $7100 (up $100 from 2019). Catch-up contributions: $1000 (no change from 2019).

• High Deductible Health Plan (HDHP's) Limits: HDHP minimum deductible - Single coverage: $1400 (up $50 from 2019). Family coverage: $2800 (up $100 from 2019).  HDHP maximum out-of-pocket Costs - Single coverage: $6900 (up $150 from 2019). Family coverage: $13,800 (up $300 from 2019).

• Flexible Spending Accounts (FSA) Limits: Contributions - $2750 (up $50 from 2019).

This may be the year to re-group and review how your organization’s health and benefits plans meet your talent and retention goals. These tax advantaged programs can play a nice role for employees when properly informed. Also note, as your employee’s life events occur so do their needs to have a better understanding of some benefits they presently do not participate in.

Joe Simon and Aon Risk Solutions is a Women In Trucking Association member. Joe represents various insurance solutions including the WIT corporate member health and benefits options. Contact Joe at [email protected] for further discussion.