MEMORANDUM

As required by the respective statutes, the IRS and HHS have just released important information regarding Health Savings Accounts as well as Medicare Part-D, applicable for 2009.

Health Savings Accounts

IRS Revenue Procedure 2008-29 contains the minimum deductible and out of pocket limits for high deductible health plans issued or renewed in 2009.

	2008	2009
HDHP Minimum Deductible Amount:
Individual	$ 1,100	$ 1,150
Family	2,200	2,300
HDHP Maximum Out-of-Pocket Amount:
Individual	$ 5,600	$ 5,800
Family	11,200	11,600
HSA Statutory Contribution Amount:
Individual	$ 2,900	$ 3,000
Family	5,800	5,950
HSA Catch-up Contribution Amount:	$ 900	$1,000

Medicare Part-D

1. The Annual Notice. On or before November 15, 2008 employers who sponsor group health coverage with prescription drug benefits or a free-standing prescription drug plan for its employees, must provide an annual notice to plan participants regarding the creditable or non-creditable status of its prescription benefit component for 2009. The following chart contains a comparison of the 2008 and 2009 parameter:

	2008	2009
Annual Deductible	$ 275	$ 295
75% Corridor	Next $ 4,050	$ 4,350
No coverage up to total out-of-pocket amount of:	$ 5,726.25	$ 6,163.75
Catastrophic coverage for the remainder of the calendar year, once the out-of-pocket amount has been reached:
Generic	$ 2.25	$ 2.40
Brand	$ 5.60	$ 6.00

Please refer to the CMS website for further details about Medicare Part-D: http://www.cms.hhs.gov/prescriptiondrugcovgenin/.

Copyright © 2008 Alfred B. Fowler, Attorney at Law.
All Rights Reserved. Reprint with permission only.
This legislative update is published as an information source for our clients and colleagues.
It is general in its nature and is no substitute for legal advice or opinion in any particular case.

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