Sep 09, 2024
Beginning on September 15, 2024, UnitedHealthcare and Oxford will be mailing letters to all Grandfathered and Transitional Relief groups renewing between December 1, 2024, and November 1, 2025. The letter will communicate the following:
- The Internal Revenue Services (IRS) has increased the minimum deductible for qualified high deductible health plans (HDHPs) to be eligible for a Health Savings Account (HSA).
- The new minimum deductible is $3,300 for an embedded deductible or $1,650/$3,000 for a non-embedded deductible.
- Grandfathered and Transitional Relief plans will be changed on January 1, 2025. Most other plans will make the change at their 2025 renewal.
While this change affects Grandfathered and Transitional Relief plans in the 2-50 segment, if a plan code is shared by a 51+ plan, the same notice and required change will be made to that plan as well.
By changing the deductible to remain in compliance with the IRS limits, and thus continuing to qualify for tax-advantaged status, 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.
The letters being sent starting on September 15 will meet the 60-day notice requirement before December 1, 2024, consistent with federal rules.
Contact your Amwins Connect Regional Sales Manager with any questions or for further information.
