Benefits50

See notice 2017-67 (Oct 31, 2017)for a wide range of QSEHRA guidance including a favorable answer to the HSA contribution question at Q & A 6.

DOL Field Assistance Bulletin 2006-02 supports the conclusion that an HSA is not a group health plan for DOL purposes, absent unusual circumstances. However, the definition of group health plan under Section 9831(d) leads to the definition in section 5000(b) - a "plan," without elaboration. Section 223 describes an HSA as an "account." I have seen some secondary sources supporting use of HSA's with a QSEHRA and others concluding that an HSA is not a "plan" for IRS purposes. However, I would feel more comfortable if saw an IRS statement that an HSA is not a group health plan.

Client company adopted a QSEHRA. Participants will purchase individual HDHP insurance policies and be reimbursed by QSEHRA. May the company make direct HSA deposits on behalf of employees? (If employees make deposits, the amount is deductible on form 1040 but subject to FICA taxes.) Is there a way for the company to make the deposits so that the company "does not offer a group health plan to any of its employees" and violate IRC 9831(d)(3)(B)(ii)?

USERRA Intermittent leave A reservist has been repeatedly called up for 3- and 4-day/week assignments. He has ceased to satisfy the "regularly works 30 hours/week" requirement for maintaining health plan coverage, i.e., has become a part-time employee. Must we treat each weekly notice as a new period of service and restart the 30-day clock for retaining the eligible employee premium sharing rate? Can we unilaterally classify this pattern of military service as a continuous period of part-time military service and then convert from the active employee rate to the 102% COBRA rate after the employee has lost the active employee coverage and received 30 days of coverage at the active employee rate?