HSA Contribution Limits Updated for 2008

As you know, some of the financial details of health savings accounts are tied to the consumer price index and may adjust each year. The IRS reviews both the minimum deductible levels for HSA-qualified high deductible health plans and the maximum contribution levels for the savings accounts themselves and makes any necessary adjustments for the coming calendar year.

For 2008, the minimum deductible remains unchanged at $1,100 for single coverage and $2,200 for family coverage. The maximum contribution is increasing, however, to $2,900 for single coverage or $5,800 for family coverage. In addition, HSA holders age 55 and older may make an additional “catch-up” contribution of $900 in 2008. For 2009 and subsequent years, the “catch-up” contribution will increase to $1,000.

For additional information about HSA regulations, please visit www.hsabank.com.

FlexPerks HSAs: A Smart Choice

If your client likes the idea of giving employees more control over their own healthcare decisions and funding, a benefit plan based on an HSA may be a smart choice. An HSA paired with a low-cost, high-deductible health plan like our FlexPerks HSA-qualified plans can be an excellent way for your client to save premium dollars. We even offer an integrated solution that allows your clients to pay both their health plan premium and HSA contributions to employees’ accounts at HSA Bank in one step. Contact your PacificSource Sales Representative for more information about this unique service.

Our HSA materials have been updated to reflect the 2008 contribution changes.

• For groups with our integrated HSA Bank banking arrangement, we publish a complete employer packet with informational brochures plus all required client forms, as well as a separate member enrollment packet with informational brochures plus all required enrollment and banking forms for members.
   
• For groups making other banking arrangements, we recommend using our Health Savings Accounts sales brochure and FlexPerks Consumer-Directed Plans sales brochure to present the product to your clients. For enrolling members, use our FlexPerks HSA brochure along with our standard group health plan enrollment form.

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Oregon Registered Domestic Partners Gain Eligibility

The State of Oregon Insurance Division (OID) issued a bulletin on December 13, 2007, requiring all Oregon health plans to offer benefits to registered domestic partners effective January 1, 2008. The new domestic partner coverage law (Oregon HB 2007) defines a domestic partnership as “a civil contract entered into in person between two individuals of the same sex who are at least 18 years of age, who are otherwise capable and at least one of whom is a resident of Oregon.”

The bulletin states that an insurer may issue a policy to an employer only if the employer’s health plan is compliant with the new law. This applies to all PacificSource group medical or dental plans. The mandate does not apply to self-insured (ASO) group health plans.

Beginning in January, as groups renew, they will receive a notice of change letter and a policy endorsement permitting enrollment of registered domestic partners.

The following summarizes how we will administer coverage in compliance with this law:

• We will not require proof of domestic partnership registration, but your clients may request the employee’s Oregon Certificate of Registered Domestic Partnership if they wish. The law does not prohibit employers from requesting proof of a domestic partnership.
   
• The mandate does not alter federal laws. If a domestic partner does not enroll when the employee enrolls, or within 31 days of the date the domestic partnership is registered, the domestic partner will be treated as a late enrollee.
   
• Children of domestic partners are eligible on the same terms and conditions as dependent children of other enrolled employees. The birth of a domestic partner’s child or adoption of a child by a domestic partner is a qualifying event.
   
• “Any gender” endorsements. While the new law is specific to same-sex partnerships, we will continue to make “any gender” domestic partnership endorsements available to employers. Large employers (51+ employees) will have an optional endorsement available for same-gender domestic partner enrollment that meets current (affidavit) criteria in addition to enrollment of the registered domestic partner. This endorsement allows us to require an affidavit of domestic partnership for domestic partners without an Oregon Certificate of Domestic Partnership. However, if domestic partners are registered, we cannot require a copy of the registration certificate.
   
• For your clients who currently offer domestic partner coverage, enrolled domestic partners do not need to register and obtain an Oregon Certificate of Domestic Partnership to remain enrolled.

We are in the process of developing a frequently asked questions document and will soon make that available to you and your clients. In the meantime, please feel free to contact us if you have questions.

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Holiday Hours

We will close at 3:00 p.m. Pacific Time on New Year’s Eve, December 31, and be closed for New Year’s Day, January 1.

All of us at PacificSource wish you
health and happiness for the New Year!

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CE Classes and OAHU Events

PAHU January Half Day Seminar

Portland Association of Health Underwriters will host a PAHU January Half Day Seminar on January 23 in Portland, Oregon, at the Multnomah Athletic Club. A panel of representatives from four carriers—PacificSource Health Plans, United Healthcare, The ODS Companies, and LifeWise—will answers questions from the PAHU membership. The event will be moderated by Ruppert Reinstadler of Group Benefits Design, Inc. For more information, visit www.orahu.org.

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Upcoming Community Events

PacificSource is proud to sponsor Northwest community events that support healthy communities and health-focused organizations. We hope you will join us in supporting these events:

Gala Dinner—Planned Parenthood of Southwestern Oregon
January 17, Eugene, Oregon

Casino Night—CASA of Lane County
February 1, Eugene, Oregon

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Eugene
(541) 687-7047 or toll-free (877) 657-9797
fax (541) 485-0915
Troy Kirk, Vice President Sales and Marketing
Doug Sheffer, Eugene Regional Manager

Bend
(541) 330-8896 or toll-free (888) 877-7996
fax (541) 330-8948
John Wright, Bend Regional Manager

Boise
(208) 342-3709 or toll-free (888) 492-2875
fax (208) 342-4508
Dave Ewers, Boise Regional Manager

Medford
(541) 858-0381 or toll-free (800) 899-5866
fax (541) 858-0486
Fred Cornett, Medford Regional Manager

Portland
(503) 699-6561 or toll-free (877) 657-9797
fax (503) 697-1075
Dennis Reed, Portland Regional Manager
Kristin Kennedy, Marketing Sales Representative

Manley Services
(541) 485-7488 or toll-free (800) 422-7038
fax (541) 681-8792
or toll-free (800) 575-1109
Stan Manley, President

Select Benefit Administrators
(503) 598-8908 or toll-free (888) 532-5332
fax (503) 598-0197
Nancy Louris, President