Medical Reimbusement Discrimination Testing

[Guest]

A company sponsors a Health FSA and in addition pays 100% of the single person health insurance premium. Are these separate plans and tested accordingly, or can they be tested together? Thank you.

[SLuskin]

Does the document have these as one plan, with all the same people eligible? Are the costs for dependent health insurance paid on a pretax basis by the employees? If they are in the same plan, the eligibility has to be the same for all employees. The benefits have to be reasonably available to all, not just to the highly compensated. The medical reimbursement plan cannot have so high a minimum that only the highly comp can participate. The 25%concentration test is done on the plan as a whole.