Employee refusal to set up HSA

[Guest Suzan Fenner]

It is my understanding that if the employer contributes to an HSA for anyone who enrolls in the HDHP, it needs to make a contribution to an HSA for all the employees who enroll in the HDHP. What do you about employees who fail or refuse to sign the documents required by the trustee to set up the HSA?

[jsb]

Require that the signing of all forms, including those enabling the companion HSA, is a requirement for enrollment in the HDHP. No signatures, no enrollment.

On the other hand HDHP is a requisite for an HSA, not the other way around. What if the employee has other coverage that makes him or her ineligible for the HSA? Conceivably they could still get some value from the HDHP.

[JDuns]

The comperability rule requires that the employer contribute to the HSA of any HSA eligible plan participant who has established an HSA. As jsb noted, if the employee has not established an HSA with any provider, no HSA contribution is required.

Remember that some employees who participate in the HDHP may not be eligible to contribute to an HSA for a number of reasons (spouse's participation in an unlimited FSA, dual coverage, enrollment in Medicare ...). Therefore, the employees who have not established an HSA may be making the decision because they understand that they are not eligible to contribute to the HSA.