Mid-Year FSA Startup with HSA for 2006

[Guest jweinstein]

This is my first post on these boards! Thank you for the wealth of information.

Here's a thought I wanted to run by my fellow benefit professionals:

I have clients who want an HDHP and HSA for their companies, but they renew mid-year and don't like the limited HSA contributions for the partial calendar year.

For instance, an employer renews 7/1/05 and wants to fully fund the employee deductible in an HSA and doesn't like the risk presented to the employees because he can only fund 50% of the deductible or 50% of the maximum HSA contribution limit.

Can we implement an FSA where the employer will fully fund the amount of the deductible (NOT implementing a company sponsored HSA for the employees) through the end of 2005? Then, the employer will end the FSA 12/31/05 and open HSA's 1/1/06 to be fully funded for 2006?

Basically, I want to start an FSA with a short plan year and then end it to start the HSA. The goal is to have the employer start the HSA concept by lowering premiums and funding employee's deductibles for 2005 and then funding the HSA's for 2006 and onward.

Do any of you forsee any problems in doing this?

Thanks,

Josh in Alaska

[Guest rdiggidy]

http://www.healthyhealthcare.com/

[Guest rdiggidy]

Whoops. I found a website that might answer your question, however I copied this web site: http://www.healthyhealthcare.com/ and now can't find the other one I had. I'll keep looking and post if I can find it again

[Guest jweinstein]

Sounds great! Thanks.

[GBurns]

Try this site instead. Read the "Road Rules" etc and consider using "Ask the Expert":

http://www.hsainsider.com