HSA and MERP at the same time. Any restrictions?

[Guest cjsmith]

Is it possible for a physician group to have both an HSA and MERP? Or, is it only permitable as an either/or situation? This would be set up for the physicians in the group- all highly-compensated professionals.

If possible, are there any restrictions or special regulations that govern? Would the MERP have to cover medical expenses first, before the HSA could be used?

I appreciate any help you can provide. Also, if there are any sources or publications that cover this, that would be helpful too.

Thank you!

[Ron Snyder]

Since an HSA is a form of a MERP, you are considering having two MERPs. Why wouldn't one be sufficient?

[Chaz]

Since an HSA is a form of a MERP, you are considering having two MERPs. Why wouldn't one be sufficient?

An HSA is NOT a form of MERP. You may be thinking of an HRA, which is simply a MERP with a rollover feature.

[Chaz]

Is it possible for a physician group to have both an HSA and MERP? Or, is it only permitable as an either/or situation? This would be set up for the physicians in the group- all highly-compensated professionals.

If possible, are there any restrictions or special regulations that govern? Would the MERP have to cover medical expenses first, before the HSA could be used?

I appreciate any help you can provide. Also, if there are any sources or publications that cover this, that would be helpful too.

Thank you!

Without going into detail, it is possible to have a MERP and an HSA at the same time but only if the MERP cannot be used to reimburse the same expenses at the same time as the HSA. You probably need an attorney to draft the relevant MERP provisions for you.

[J Simmons]

Take a look at this thread