FSA / HRA / HSA
FSA Reimbursement for Non-Covered Spouse
Health FSA funds may generally be used to reimburse eligible medical expenses for a spouse or qualifying dependents even if they are not enrolled in the employer's health plan.
FSA / HRA / HSA
Question of the Week - HDHP and HSA
Q.- An employee elected a health FSA effective 1/1 and now during their annual open enrollment for a 7/1 plan, they are considering enrolling in a High-Deductible HSA plan. What
Q.- An employee elected a health FSA effective 1/1 and now during their annual open enrollment for a 7/1 plan, they are considering enrolling in a High-Deductible HSA plan. What should I advise?
A.- An employee who is participating in a health FSA cannot also participate in an HSA (except a limited purpose FSA).
An individual with an FSA is not prohibited from enrolling in a high-deductible health plan, but they cannot participate in an HSA with the HDHP.
The answer might dependent upon how the HDHP health plan works. Can participants choose HDHP coverage without automatically being enrolled in an HSA? If yes, perhaps they will want to do that and not contribute to the HSA until 1/2026 (assuming they don’t have an FSA carryover to next plan year). If the HSA participation is automatic with the HDHP, they would not meet the eligibility requirements since they are participating in a health FSA.
Benefit Allocation Systems (BAS) provides online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
Topics
COBRA
COBRA Offering to Retirees
When a covered employee becomes entitled to Medicare before retiring, a covered spouse may receive up to 36 months of COBRA continuation from the date of Medicare entitlement.
COBRA
COBRA Offering to Retirees
When a covered employee becomes entitled to Medicare before retirement, the spouse may be eligible for up to 36 months of COBRA continuation coverage.