SLuskin Posted June 24, 2011 Posted June 24, 2011 A client has both an HSA and an AFLAC hospital protection plan. Does anyone know if this plan conflicts with the HSA? It pays benefits for inpatient hospitalization, surgery and diagnostic testing.
GBurns Posted June 25, 2011 Posted June 25, 2011 I have been told that there is no relationship between most supplemental plans such as those sold by Aflac and AllState etc. and HSAs or FSAs. The main reason being that the supplemental plans pay benefits under section 104 based on personal and physical injuries or illnesses. They do not reimburse medical expenses. I think that Allstate secured a Private Letter Ruling from the IRS regarding this or a related issue. George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
GBurns Posted June 26, 2011 Posted June 26, 2011 It turns out that the hospital policies are treated differently than the other supplemental plans and it also depends on the riders. Note Policies G and H in the PLR issued to Allstate: http://www.irs.gov/pub/irs-wd/0704010.pdf http://www.irs.gov/pub/irs-wd/0704010.pdf George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
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