HSA Contributions for double family coverage

[Guest Joe Gaither]

Employer A sponsers an HSA program with employee contributions through a Cafeteria Plan. Employee X wants to cover his family under the HDHPlan. Employee X spouse also covers the family under her employers (B) traditional HMO plan. The question which our HSA provider can't answer with any cites is: What is the contribution limit for employee X? Is he limited to employee only limits ($3,050), because the family has "other health coverage", or can he elect the family limit of ($6,150)? I know this is an odd situation, because most folks no longer are double covered but we have run into this on two occasions recently and don't have an answer. Any enlightenment will be greatly appreciated.

Employee_Contribution_limits_HSA.doc

[leevena]

I don't know if I understand your question completely, so I hope I am on target with my answer. For double coverage purposes a person can be covered by two qualified HDHP's, but cannot be covered by a mix of qualified HDHP and non-qualified plans. So in this example, Employee X could not have "family" coverage at both places, since the second employer has a HMO. If Employee X enrolls as a single in your HDHP you would contribute the employee only limit.

Did this answer your question?

As for a source of information, it seems odd to me that this question could not have been answered for you through your HSA vendor, your broker, etc. This situation is not unusual and the rules governing this has been around since the very beginning.

[Guest jackmo]

Basically, employee X cannot have 1st dollar coverage if he wants to make contributions to an HSA. Therefore, he cannot be a participant in his spouse's HMO.

[Guest Joe Gaither]

Basically, employee X cannot have 1st dollar coverage if he wants to make contributions to an HSA. Therefore, he cannot be a participant in his spouse's HMO.

sorry for asking the question the way I did--let me try again. Employee X has single coverage under HDHP with single contribution HSA--spouse covers self and kids under her ER's plan (non HDHP). Can monies in X's HSA account be used to cover unreimbursed expenses for spouse and kids?

Sorry_for_asking_the_question_the_way_I_did.doc

[hr for me]

Basically, employee X cannot have 1st dollar coverage if he wants to make contributions to an HSA. Therefore, he cannot be a participant in his spouse's HMO.

sorry for asking the question the way I did--let me try again. Employee X has single coverage under HDHP with single contribution HSA--spouse covers self and kids under her ER's plan (non HDHP). Can monies in X's HSA account be used to cover unreimbursed expenses for spouse and kids?

Based on what my broker has told me :

http://www.hsabank.com/hsabank/Education/F...5-A6CDAD6AAE04}

Question:

Can a spouse or dependent have any other insurance other than another qualified HDHP without causing the account holder to be ineligible to contribute to an HSA?

Answer:

A spouse or dependent can have other types of insurance coverage without making the individual ineligible to contribute to an HSA. For example, if one spouse has self-only HDHP coverage and the other spouse and dependent children are covered under an HMO, the first spouse could establish an HSA and use it to pay for HMO-related out-of-pocket expenses for the other spouse and kids. However, if the first spouse has "family HDHP coverage", at least one other person in the family could not have other coverage except HDHP coverage, otherwise it would not be family (spouse + 1) coverage. (IRS Response, July 16, 2004).