HSA disqualification

[Guest Sarah C]

Our company contributes to the HSAs of employees who elect medical coverage under the HDHP. All HSAs are set up at one specific bank, and company policy is to make the employer contributions only to HSA at that specific bank. Occasionally the bank refuses to set up an HSA for certain employees. The bank won't divulge specific reasons for these refusals, but we understand that this is generally related to the employee's credit history. The question is, is there any way to classify this as a status change event allowing the employee to elect a different medical plan?

[MARYMM]

Our company contributes to the HSAs of employees who elect medical coverage under the HDHP. All HSAs are set up at one specific bank, and company policy is to make the employer contributions only to HSA at that specific bank. Occasionally the bank refuses to set up an HSA for certain employees. The bank won't divulge specific reasons for these refusals, but we understand that this is generally related to the employee's credit history. The question is, is there any way to classify this as a status change event allowing the employee to elect a different medical plan?

Doesn't sound like a qualifying event to me. And the credit history reason doesn't sit well with me.

We sometimes get notification that an employee has not provided required documentation (Patriot Act) for their HSA account to be opened. HR handles this but I think their practice is to enroll the employee in the HRA instead of the HSA when this happens and the employee is not able to crrect the situation.