Health care reform means big changes for everyone involved in health benefits. In brief, the effects of the bills signed by President Obama in March include, among other things:

• Broad new requirements for employer-sponsored, individually purchased or Medicaid coverage could widen the market for plans that meet IRS guidelines for health savings accounts (HSAs).
• Over-the-counter (OTC) medications can no longer be paid from HSAs or flexible spending accounts (FSAs) unless prescribed by a physician as of Jan. 1, 2011.
• The FSA contribution limit is $2,500 (indexed to the consumer price index) starting on Jan. 1, 2013. There are no changes in FSA limits for the next two years: 2011 and 2012.
• The penalty for non-qualified distributions from HSAs increases from 10 percent to 20 percent.

We are now making changes in our service centers, operations and sales and marketing to prepare individuals and employers for the impending changes in FSAs, HSAs and HRAs. We believe that health accounts remain strong tools for motivating employees to stay healthy and manage their health care dollars wisely.