Cost of living adjustments (COLA)

This rule requires the Department of the Treasury to release the cost of living adjustments no later than June 1 of the prior year. This will give employers and administrators time to plan and communicate changes to participants and employers.

• COLA changes must be published by June 1 of the year prior to the year the adjustments are effective.
• The COLA modification will be based on the average of the Consumer Price Index for the 12-month period ending March 31 as opposed to August 31.

What are the benefits of this change?

This will significantly improve the employer’s ability to make decisions regarding benefits plan design or HSA contributions for the upcoming year in a more timely manner.

If you have questions, employers should contact their Humana Sales Representative.
Brokers should call Humana’s Spending Account Hotline at 800.281.6778.