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Posted

A client asked me if they could start a HRSA or HSRA (I can't remember which) and wanted to know if I had ever heard of it. Basically this "HRSA" is a HSA and HDHP coupled with a deductible reimbursement from the employer.

1) I don't think this is permitted. Wouldn't this really just be an HRA coupled with an HSA/HDHP which would make the participants ineligible for the HSA?

2) Has anyone ever heard of this? Am I completely missing something?

Posted

I do not think it is wise to guess at what the client might mean.

I suggest that you get them to be more definite and to explain what they mean and what they understand.

It is possible to have an HSA/HDHP along with reimbursement of the out-of-pocket eligible expenses including deductible. BUT, the devil is in the details and what the client means might not be what you opine on.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

Posted

This IRS pub might be a starting place as you can formulate the follow up questions to ask about what they're really wanting. http://www.irs.gov/pub/irs-pdf/p969.pdf

I suspect your primary confusion is the acronym... HRA is a valid one, but HSRA and HRSA aren't (or at least are not industry useage; who knows what terms some salesperson or inhouse consultant has tried to create).

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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