HRA

[Guest Nini]

Participant has submitted a claim for reimbursement for premium for group health coverage from spouse's group health plan. Is this the type of coverage pernmitted under IRS Notice 2002-45?

Thanks.

[leevena]

The answer depends on how the HRA is structured. An HRA is a self-funded account owned and maintained by the employer. The employee can submit expenses for reimbursement. The key is what expenses are defined as eligible. The employer could define expenses as they wish. One option is for the employer to recognize as eligible the expenses the IRS recoginzies as eligible. A second option is to match the carriers definition of eligible. The third is to define a smaller sub-set of expenses. You should obtain a copy of the eligible expenses and review that for your answer. Hope this helps.

[Guest Nini]

The plan allows for reimbursement of medical insurance premiums, but participant is asking for reimbursement of group health plan premium from spouse's employer which has already been paid on a pre-tax basis under that employer's plan.

Doesn't seem right but can't find any guidance.

[GBurns]

See Revenue Ruling 2002-3 which addresses the issue of whether or not premium that was deducted on a pre-tax basis is reimburseable. I think that the RR also gives some other cites.

It could be that Revenue Ruling 2002-80 might also be applicable, if the HRA is funded with the intention of reimbursing premium.

[jmor99]

This is hilariously ironic! I've always wondered when and if this would happen with an HRA. An employer subsidizing another employers health plan!

[leevena]

Doubt very much if the IRS would look kindly on someone taking two tax deductions on the same expense.