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We have an HDHP which I'm sure is, if it were all we had, would make us HSA-eligible. However, we also have a company-funded (self-insured) supplemental plan, that reimburses the entire deductible. I've always assumed that the supplemental plan disqualifies us for HSA. Is that true?
We have an HDHP which I'm sure is, if it were all we had, would make us HSA-eligible. However, we also have a company-funded (self-insured) supplemental plan, that reimburses the entire deductible. I've always assumed that the supplemental plan disqualifies us for HSA. Is that true?
No, the plan has to meet certain criteria in order to use a HSA. Just because it has a high deductible doesn't mean it is a tax qualified plan. It sounds like your company has a HRA (Health Reimbursement Account). That would mean your health plan is not tax qualified. Companies can contribute to a HSA so that doesn't disqualify you. Look at how your deductible is handled, if it says something like $3000 individual/$6000 family, it isn't a tax qualified plan---don't confuse that with a lower deductible for an employee that has individual only coverage though. A common deductible means that one person on your plan can meet the entire deductible or a combination of people can (in your family). You can not be covered under a spouses plan and use a HSA.
No, the plan has to meet certain criteria in order to use a HSA. Just because it has a high deductible doesn't mean it is a tax qualified plan. It sounds like your company has a HRA (Health Reimbursement Account). That would mean your health plan is not tax qualified.
Just to be clear: We have two separate health plans, a primary and a secondary.
Quote:
Originally Posted by golfgal
Look at how your deductible is handled, if it says something like $3000 individual/$6000 family, it isn't a tax qualified plan---don't confuse that with a lower deductible for an employee that has individual only coverage though. A common deductible means that one person on your plan can meet the entire deductible or a combination of people can (in your family).
How would the deductible in a tax qualified plan appear? "$3000 per person"?
Just to be clear: We have two separate health plans, a primary and a secondary.
How would the deductible in a tax qualified plan appear? "$3000 per person"?
If the total family deductible is $6000 there should be something in the documents that state that it's a common deductible.
For the 2 plans is one say Blue Cross/Blue Shield and the other AFLAC or something similar? How does the second plan pay out? WHY do they offer two plans like this?
The second plan is just the company reimbursing us for the deductible. (There's an administrator that administrates it, but he keeps saying clearly that he's just processing requests for reimbursement, doesn't matter that its for health care deductible as far as he's concerned.) Why? The company says it saves them money as compared to a lower deductible health plan, and I guess they were concerned that they'd lose a lot of people if they just quintupled the deductible without giving us something (deductible reimbursement) in return.
The second plan is just the company reimbursing us for the deductible. (There's an administrator that administrates it, but he keeps saying clearly that he's just processing requests for reimbursement, doesn't matter that its for health care deductible as far as he's concerned.) Why? The company says it saves them money as compared to a lower deductible health plan, and I guess they were concerned that they'd lose a lot of people if they just quintupled the deductible without giving us something (deductible reimbursement) in return.
If it is just for reimbursement and doesn't actually offer any actual medical coverage those typically don't change your eligibility for a tax qualified plan.
(Uh, the reimbursement is for deductibles from the health insurance. Is that "medical coverage"?)
It sounds like I might be in a position to impress on the employer the need to offer an HSA...
If your medical plan is a tax qualified high deductible plan you can open your own HSA, it's not something that you have to do through your employer. Ask at your bank, they probably have one. Just make sure your medical plan is really eligible first. If you can have the plan, the tax savings are very nice.
Reimbursement of fees is not medical coverage.
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