Tag: HDHP

Question: Can Health Saving Account (HSA) distributions be used for a dependent covered under a non-HSA plan? Answer: Yes, monies in an individual HSA account may be used for a dependent not covered under the High Deductible Health Plan (HDHP), as long as the dependent is claimed on the participating employee’s tax return, and the…

Question: Is an employee disqualified from making HSA contributions if she has a dependent on her HDHP while he is simultaneously covered by military insurance? Answer: The short answer to your question is no, the employee may still have the Health Savings Plan (HSA) and make contributions.  The dependent’s non-HDHP coverage does not affect the…

Question: We have a group that will offer a High Deductible Health Plan (HDHP) effective December 1st of this year. The Employees get paid semi-monthly on the 5th for the pay period that ends on the last day of the previous month.  Starting with the December 5th paycheck, can an eligible employee start contributing to a…

Question: Under the Affordable Care Act, can an employer increase the individual deductible of an HSA if they plan to increase the contribution amounts? Answer: The direct answer is that it would be permissible because the annual deductible may be as low as the “minimum annual deductible” or as high as the “maximum OOP limit” set by…

Question:  If an employer discontinues a PPO, which is part of a grandfathered plan made up of two PPOs and an HDHP, will the entire plan lose the grandfathered status? Answer: The Affordable Care Act (federal health care reform) specifies that a health plan is a grandfathered plan if (a) it was in existence on…

Question:  How much can an employee with family coverage contribute to his HSA plan?  Up to the plan deductible, the out-of-pocket maximum on the plan or another amount? Answer: The maximum annual HSA contribution is based on the statutory limit for the type of HDHP coverage the employee has elected. For 2012, the maximum annual…