Fall 2025 Insight Employer Newsletter

HSA, HDHP and FSA Limits will rise for 2026

The IRS has adjusted the contribution limits for Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), and health flexible savings accounts (FSAs). 

The annual limits for the tax-advantaged accounts will increase a little over 2% from the 2025 limits:

• For HSAs, accountholders may contribute up to $4,400 for self-only coverage, and $8,750 for family coverage.
• Pre-tax contributions for HRAs will be limited to $2,200.
• The limit for flexible spending accounts (FSAs) will increase to $3,400.  

HSAs are tax-advantaged accounts that allow employers and employees alike to contribute into the account so employees can pay for qualified medical expenses now and save for the future.

• Funds can be contributed into the account on a pre-tax basis by both employer and employee. The money contributed through payroll into to the HSA through is also not subject to social security (FICA) and Medicare taxes.
• Funds can be invested and grow tax free. There is also no expiration date on an HSA and no required minimum distribution like there is from a 401(k) or IRA. This means that accountholders can potentially spend years growing the funds in their HSA — all tax free.
• Funds used for qualified medical expenses  are tax free.

Reminders

• HSA and FSA accountholders should always make sure they use their funds for qualified medical expenses; otherwise, spending these funds on non-qualified expenses, such as to help pay for a new television or car repair, will result in taxes and additional penalties.
• Unlike HSAs, FSA accountholders are not able to roll over any unused funds to the next calendar year, unless their FSA allows for a partial rollover. If an employer has selected the roll-over option, up to $660 of unused FSA funds from 2025 may roll over into 2026. Alternatively, an employer may opt to offer its employees a grace period of up to 2.5 months to spend the remaining funds.
• Depending on how the employer sets up its organization's HRA, the employee may or may not be able to roll over unused HRA funds.  

Administrative Tip: Premium Invoices 

As a way to help make working with Independent Health easier, we’ve developed a Group Administrative Manual for those who have the responsibility of administering group health benefits for employees within their company.  The manual outlines the routine procedures necessary to effectively administer a group’s plan.

Some of the common questions we receive are about premium invoices, a topic covered in the manual:

• Premiums are due on the first day of the month for that month of coverage. If premiums are not received within 30 days of the due date, the coverage will be retroactively canceled to the last day in which premiums were paid.
• Invoices are generated prior to the due date and reflect the membership information on the day they are run.
• We recommend that you pay the exact amount billed regardless of pending membership changes to make billing administration easier for you. Any membership changes that affect the premium amount due will be reflected on a future invoice.
• Independent Health uses the “Wash” proration as its standard:
  • A subscriber who becomes effective on the first through the 15th of the month is billed for a full month premium.
  • No premium is billed for subscribers who become effective on the 16th through the end of month.
  • Subscribers whose cancellation date is the first through the15th of the month incur no premium charges.
  • Subscribers whose cancellation date falls between the 16^th to the end of month incur a full month premium due.

Online Bill Payment and Presentment

Independent Health offers a secure online portal to view and pay your invoices. It’s a simpler way to pay your invoices without the extra cost or time associated with stamps or paper checks.

How to Get Started

• You will be able to register with our ePay tool after you receive your first invoice.
• Visit independenthealth.com/billpay
• Register using your account number, contact information and email address.
• Select your username and password – and securely save banking information.

Manage your Account Online

• Once registered, log in to view and pay your invoice.
• Schedule payments in advance, for one-time pay or reoccurring.
• View current and past invoices, along with “Balance Due.”
• Go paperless! Adjust your preferences to turn off paper invoices, and your electronic invoices will be sent directly to your inbox.

Pay and Confirm

• Pay by ACH (Automatic Clearing House).
• Select the amount to pay and payment date (immediate or scheduled).
• Click "Pay" to receive your immediate payment confirmation.

Where to send applications

Submit all enrollment/eligibility requests prior to the effective date, but not later than 30 days from the qualifying event to:

Mail: Enrollment Department
Independent Health
P.O. Box 710
Buffalo, NY 14231

Email: enroll@independenthealth.com

Fax: (716) 631-4059

Who to Call

Contact the sales team for all account-level assistance with enrollment tools and validation, online bill payment and presentment, eligibility, and coordination of benefits:

• Phone: (716) 631-5392, option 4 or 1-800-453-1910, option 4
• Fax: (716) 631-8554
• Hours: Monday – Friday, 8:30 a.m. – 4:30 p.m.
• Small Group Sales and Service Email: sales.administration@independenthealth.com
• Large Group Sales and Service Email: LGSales@independenthealth.com

Five Stars kick off open enrollment 

In most sports, each season culminates in the crowning of a champion.  In health care, however, the accolades come at the beginning of a season. 

With the Medicare Annual Enrollment season only a few days old, the Centers for Medicare and Medicaid Services has released their Medicare Star Ratings. And, thanks to a very deep bench of Most Valuable Players, Independent Health has earned 5 out of 5 Stars from the Centers for Medicare and Medicaid Services, the highest rating possible.

This is a significant score, and we stand apart from our regional counterparts as the only insurer in Western New York, and one of only 18 plans nationally, to offer a 5-Star Medicare Advantage plan in 2026. 

The announcement of the Medicare Star Ratings comes just a few weeks after the National Committee for Quality Assurance (NCQA) releases its own Star measures.  This past September – and for the third consecutive year - Independent Health earned the highest possible overall rating of 5 out of 5 stars, according to NCQA’s 2025 Commercial Health Plan Ratings. Our commercial plan was the only plan in New York State, and one of just eight in the nation that received  5 Stars for 2025.

These high ratings are not a one-year accomplishment: this is the 16^th consecutive year that Independent Health has achieved 4.5 or 5 Stars for our Medicare HMO plans and 11 consecutive years for its Medicare PPO plans. Our commercial plans have achieved 5 out of 5 Stars by NCQA for the last three years, and 11 consecutive years of being rated 4.5-stars or higher. 

We are able to achieve these national benchmarks for quality and service because we don’t rest on our past laurels; like watching game film, we continually look for areas in which we need to improve.  In fact, although many Medicare Advantage plans’ CMS Star ratings remained flat or decreased, Independent Health improved in 25 measures and continued to achieve 5 Stars in Rating of Health Plan, Rating of Health Care Quality, Getting Needed Care, Customer Service and clinical measures such as Breast Cancer Screening, Care for Older Adults, and Diabetes Care.

Our relentless focus on the health of our members, as well as provider relationships, allow us to help drive industry-leading outcomes. We have a best-in-class analytics team that is key to identifying the right issues and solutions, and using a 360-degree view of  each member we create ways to reach members in a targeted, highly personalized and consistent manner across multiple touch points to increase preventive services, promote wellness activities, and encourage engagement in case and disease management initiatives. We’ve set up a secure, seamless flow of data to our participating providers so they can work proactively to close gaps in care and help their patients get the care they need in order to maintain or improve their health. 

At Independent Health, while there’s seasonality to our work, there’s no off season for our team. We work hard every day at our craft to ensure we deliver the RedShirt Treatment to make our members’ health care experiences easier through affordable, high-quality coverage.

By Richard Argentieri, Senior Vice President, Chief Sales & Marketing Officer