New health care legislation alters consumer directed health plans – high deductible, low premium health plans often linked to H.S.A. (Healthcare Savings Accounts) funded by employers, employees or a combination of the two.   HRA (Healthcare Reimbursement Arrangements) and the Flexible Spending Accounts with the annual “use it or lose it” provision, are also impacted by the new law.

For example, revenue will be generated by removing reimbursement of the over the counter medications through HRA, HSA, & FSA unless prescribed by a physician.  That change will take place in 2011.  In 2013, the law will cap health FSA to $2,500 a year and then indexed for inflation from there.  Nonqualified withdrawals from the HSA, will result in an increase of penalty from 10% to 20%

Many other changes to come and some will be based on how government agencies interpret the bill’s provisions and the regulations that will be forthcoming.