HSA's and HRA's in Group Health Insurance
by yacoxx, Performer
- Created: December 2, 2009, 5:52 pm
I've got a few questions I was hoping could get answered here. First some background:
- We will be setting up a high deductible health plan (HDHP) for all of our employees.
- The HDHP will have a Health Savings Account (HSA) set up for each employee. The HSA would be minimally funded by the employer on a monthly bases. It would just be a small % of the employee's deductible. The % of the deductible contributed would be the same for all employees.
- We would also like to set up a Health Reimbursement Arrangement (HRA) that the employer would contribute to on a monthly basis. The HRA would be more heavily funded, but contribute only to costs incured directly through the HDHP (health plan)
- Employees will have to pay for a portion of their health premiums.
So here's a bunch of questsions that have come up:
From what I've read contributions to an employee's HSA must either be the same for all employees or be the same % of their deductible. Is the employer also able to do contributions based on a flat % of the premium? The idea is employees with higher premiums get more contributed, since they theoretically would have higher health care costs.
Do HRA's have the same rules regarding contributions to accounts?
- Paying Insurance Premiums:
If the employee is required to pay for a portion of their premium, can they be reimbursed through the HRA for what they paid? From my understanding if their premium payment comes from a pre-tax salary reduction, the HRA can not reimburse premium payments.
Is it possible to have the employee pay for a portino of their premium with post tax dollars? In that case, would they be able to be reimbursed through the employer funded HRA?
- HRA Accounts:
Do HRA accounts have to be set up and funded for each individual employee? Can the employer set up a single large 'company' fund which they contribute to? Then individual employee approved costs would be reimbursed from the pool.
- Individual HRA Growth:
At the end of each year, funds left in the HRA would just roll over and continue to grow. If an individual's HRA balance reaches a certain level, can the employer stop making contributions to it until some of the funds are spent? Would stopping to contribute to some (high balance) HRA's while continuing to fund others fall under anti-discrimination rules?
Wow, I know that's a lot, but it's hard to find some of the specific information out there. Thanks a ton for anyone who can help out on any of the points.
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