USA: How to identify disqualifying HSA coverage in a creative marketplace

By Karen Murray, Compliance Attorney, Alliant Employee Benefits

While creative product designs in the US are understandably attractive to employers, it’s important to consider that some of them could adversely impact employee HSA (Health Savings Account) eligibility, even though they may purport to be HSA-compatible. Moreover, employers have an obligation to confirm employees are not covered by incompatible coverage that they sponsor.

When there’s a lack of direct guidance (and often there is), employers should consult their advisers and recall baseline IRS guidance. Certain types of coverage (dental, vision, preventive care) are expressly permitted by the rules, but otherwise, any plan that provides coverage before the required minimum deductible has been satisfied is potentially disqualifying.

Karen’s full article is available at Employee Benefits Advisor.

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