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Effective July 1, 2011 mileage rates for medical purposes will increase from .19 to .24 cents per mile. 

The excise tax for non qualified withdrawals from an HSA account has increased from 10 to 20%.

Effective Jan 1, 2011 the monthly limit for Transit has been increased to $230.00 and the Mileage Rate for allowable medical related trips is now .19 cents   

New 2011 Flex Spending limits are as follows:

Adoption has been raised to $13,360.00.

Dependent Care will remain the same at $5,000.00/year for a couple filing joint return.

Parking will remain at a monthly maximum of $230.00

Money removed from an HSA and not used on qualified medical expense will be taxed 20%.  This represents an increase of 10%.  This change begins for distributions made during tax years starting on or after January 1, 2011. 

Effective Sept 23 the following mandates have gone into effect

• Covering Dependent Children to age 26

All plans must cover dependent children up to age of 26.

• 100 percent coverage of preventative care services 

All plans (except grandfathered plans) will provide coverage with no member cost sharing for recommended preventive care services, when provided in network.

HHS has revised the effective date of the $2,500 cap for Flex spending accounts.  Earlier version of the law had the cap going into effect on Jan 1 2011.  It has now been revised to go into effect on Jan 1,2013.  The one change that does take effect in January of 2011 is participants will not be reimbursed for over-the-counter, nonprescribed drugs bought on or after January 1,2011.      

The Department of Health and Human Services has unveiled their new website www.healthcare.gov. It serves as the government's information tool as the HHS implements the Affordable Care Act.

Check back for updates on current events in the world of insurance.

This blog will provide you with information about new insurance products, government activity, and other newsworthy topics that impact you!