Commentary: A recent technical release issued by the U.S. Department of Labor imposes severe dollar limits on employers wanting to make pre-tax contributions to the medical flexible spending accounts for eligible employees, where the employer chooses to not sponsor a group medical plan and the employee obtains his or her own coverage through a health exchange or marketplace under the Affordable Care Act.
Distributed on September 13, 2013, this new rule took effect for plan years beginning on or after Jan. 1. The release states that these rules will soon be issued in substantially identical form by the other two federal partners, the U.S. Treasury Department and Department of Health & Human Services.
