Aug 14, 2023
In connection with changes to the IRS minimum deductible for qualified high deductible health plans eligible for a health savings account, UnitedHealthcare will be making changes to Grandfathered and Transitional Relief Plans in addition to ACA plans.
The Internal Revenue Service (IRS) has increased the minimum deductible for qualified high deductible health plans (HDHPs) eligible for a health savings account (HSA) to $1,600/$3,200 for individual/family deductibles or $3,200 for an embedded deductible. UnitedHealthcare plans will change to comply with these new deductible limits as follows:
- Grandfathered and Transitional Relief plans will be changed on January 1, 2024.
- ACA plans will make the change on their renewal in 2024.
All Grandfathered and Transitional Relief plans for Small Business customers (2-50) will receive a standalone notice. While this change affects Transitional Relief HSA plans in the 2-50 segment, if the plan code is shared by a 51+ plan, the same notice and required change will be made as well.
By changing the deductible to meet the IRS limits, UnitedHealthcare is technically making a change to Grandfathered and Transitional Relief plans. Therefore, the change will be handled as a uniform modification (UM) and the current plan names will be kept for the Grandfathered and Transitional Relief plans to renew correctly.
A letter will be sent on September 15 to all Grandfathered and Transitional Relief groups renewing between December 1, 2023, and November 1, 2024, communicating the 2024 HSA deductible change. By changing the deductible, these HSA plans will be compliant with IRS requirements and will be able to maintain their tax advantaged status.
- The mailing will meet the 60-day requirement consistent with the federal rule.
- For Grandfathered and Transitional Relief plans, all plan codes that have deductible levels under $1,600 or $3,200 should be changed at the same time, regardless of renewal date.
For groups already on ACA plans, UnitedHealthcare will use the standard renewal package/uniform modification form letter process to inform groups of the HSA change.
For more information, contact your Amwins Connect Regional Sales Manager.
