In This Issue: Stay Calm and Carry On!Featured Article

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As we quickly approach the 100-day mark for the Trump administration, the chaos surrounding the Affordable Care Act continues, highlighted by the Republican’s withdrawal of their repeal and replace legislation prior to a House vote.

Determining where we go from here seems to be anyone’s guess, but after watching the industry ebb and flow for decades, our best advice is to stay calm and carry on, as Self-Funded health plans continue to cover an estimated 75% of the U.S. workforce.

inside this issue
jpf-spring2017
Revised Limits for HSA & FSA Contributions

The IRS and Department of Health and Human Services recently released new limits for contributions to HSAs and Health FSAs for 2017. Contributions by individuals to HSAs cannot exceed $3,400 in 2017, with the maximum family contribution remaining at $6,750, the same as 2016. Once again, a $1,000 catch-up contribution also applies. Health FSA limits for 2017 have been increased by $50 from $2,550 per employee to $2,600. Health FSA transportation fringe benefits for parking, transit passes or vanpooling are remaining the same this year, with a limit of $255 for each. Read More >

Bundled Payments Yielding Good Results

In a previous newsletter, we discussed bundling introduced by Medicare which focuses on orthopedic and cardiac procedures. Through the mandatory initiative for comprehensive care for joint replacements (CJR), which became policy in 2016, some 800 hospitals are participating in the program.

While some sources report the results of bundling as mixed, Medicare reports that joint replacement payments increased by approximately 5% nationally, but decreased 8% for BPCI participants. One large health system achieved a 20.8% episode decrease and another reported a significantly shorter prolonged length of stay – a sign of fewer complications resulting from surgery.

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Trends, News, Updates, and More Inside!

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As an independent Third Party Administrator with expertise in Self-Funding, J.P. Farley can help your organization better manage the risks and future costs of employee health care.

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