Simultaneous HSA & MERP?

[Guest cjsmith]

Hi, quick question:

Is it possible for a physician group to have both an HSA and MERP? Or, is it only permitable as an either/or situation?

If possible, are there any restrictions or special regulations that govern?

Thank you in advance!

[J Simmons]

You can have an HSA at the time you also have MERP coverage.

However, EEs may only be eligible for contributions (by the ER or themselves) to the HSA for months when they have MERP coverage if the MERP imposes the necessary 'high' annual deductible on expenses that it will cover.

[Guest cjsmith]

You can have an HSA at the time you also have MERP coverage.

However, EEs may only be eligible for contributions (by the ER or themselves) to the HSA for months when they have MERP coverage if the MERP imposes the necessary 'high' annual deductible on expenses that it will cover.

Thank you for your advice. Can you please clarify what you mean by "if the MERP imposes the necessary 'high' annual deductible on expenses that it will cover." I am not sure what you mean here. I realize that it is unusual to have both of these. Thanks again.

[J Simmons]

Since the HDHP (high deductible health plan--insurance coverage) that is required to render the employee eligible to make tax-deductible contributions to an HSA for a month cannot, if it is single coverage, have an annual deductible for 2009 that is less than $1,150, the simultaneous MERP must not cover that first $1,150 of medical expenses for the year.

[Guest cjsmith]

Since the HDHP (high deductible health plan--insurance coverage) that is required to render the employee eligible to make tax-deductible contributions to an HSA for a month cannot, if it is single coverage, have an annual deductible for 2009 that is less than $1,150, the simultaneous MERP must not cover that first $1,150 of medical expenses for the year.

Thank you for the clarification. Do you know of any specific reference or publications that detail this scenario?