Frequently Asked Questions



Health Savings Accounts (HSA)

Q. Do I have to be enrolled in a High Deductible Health Plan (HDHP) to contribute into an HSA (Health Savings Account)?

A. Yes.


Q. If I have an HSA (Health Savings Account) and an FSA (Flexible Spending Account) can I get reimbursed from both accounts

A. No. Both of these accounts are regulated by the IRS and strict guidelines have been put in place to avoid “double dipping”. If you have both accounts, the FSA becomes a “limited purpose” account (limited to dental, vision or preventive care expenses).


Q. I am enrolled in Medicare. Can I have an HSA?

A. No. IRS rules prohibit Medicare eligible individuals from contributing into an HSA.


Q. Can I roll over unused funds from an FSA or HRA?

A. Yes, regulations now allow you to roll over unused funds from an FSA or HRA on a one-time basis. Please talk to your employer or third-party administrator for specific details.


Q. Can I transfer funds from an IRA to my HSA?

A. Yes, regulations allow a one-time rollover from an IRA to an HSA, up to the annual HSA contribution maximum. Prior to transferring funds, please consult your tax advisor to discuss the benefits and tax reporting requirements.


Q. What is the maximum contribution I can make in an HSA?

A. For 2009, the maximum contribution is $3,000 for individuals and $5,950 for families.


Q. If I leave my current employer, can I take my HSA balance with me?

A. Yes. The monies in your HSA is always yours, including any monies your employer may have contributed into the account. It is important to remember you must be enrolled in a High Deductible Health Plan (HDHP) in order to continue your contributions. If your new employer does not have an HDHP, but has a traditional health plan, you may pay for eligible expenses via your HSA, but you cannot make any contributions.


Dependent Child(ren) Age Limit

Q. What is the maximum age my child can be covered on my health plan?

A. Effective October 1, 2008 for new or renewing fully insured plans or ERISA government plans sitused in Florida*:

  • The insured must be offered the option to cover the dependent child to age 30
  • In the event the Dependent meets the following requirements, extended coverage may be offered for that Dependent up to the end of the calendar year in which the Dependent reaches the age of 30. To be eligible for extended coverage, a Dependent must:
    • Be unmarried and not have dependents of his or her own;
    • Be a resident of Florida or a Student, AND
    • Not have coverage as a named subscriber, insured, enrollee or covered person under any other group, blanket or franchise health insurance policy or individual health benefits plan, or is not entitled to benefits under Medicare.

Q. Can an employer or group choose not to offer coverage to qualified dependents through their health plan?

A. No. The decision to provide coverage to dependents to age 30 belongs to the eligible employee, not the employer or group.


Q. As an employer, can we switch health plans in the middle of the plan year?

A. It is not allowed to switch health plans within the same insurance carrier. However, the changing of insurance carriers is permitted.


Medicare

Q. I am enrolled in Medicare and I’m covered under my group health plan. Which plan is primary and which is secondary?

A. If your employer has 20 or more employees, then your group health plan will be primary and your Medicare coverage will be secondary. If your employer has 19 or less employees, then Medicare will be primary and your group health plan will be secondary. It is always recommended to show both ID cards at the time of your doctor visit.


Q. When do I get my Medicare discount premium from the insurance carrier?

A. You must be enrolled in Medicare Part A and Part B to qualify for the Medicare discount. You must also provide a copy of your Medicare card to the insurance carrier showing you have Medicare Part A and Part B. If this is not provided to the insurance carrier, then you will not receive the discounted health rate.


Cafeteria Plan - Section 125

Q. What is a Cafeteria Plan?

A. A Cafeteria Plan is another name for the IRS Tax Code Section 125. This tax code allows employers to offer their employees a menu of benefits, in which the employee chooses the benefits that best fit their needs. The majority of the benefits offered, and if selected by the employee, the premium is deducted from each paycheck on a Pre-Tax basis. Hence, the employee lowers his/her gross taxable income.


Q. What benefits can be offered through a Cafeteria Plan to help lower the employee’s gross taxable income?

A. Benefits that can be offered through a Cafeteria Plan are Health, Dental, Short Term Disability, Cancer Plan, Flexible Spending Account, Child Care Spending Account, and Voluntary Life. The premium for the voluntary life benefit may be split up between pre-tax and post-tax deductions depending on the benefit amount being selected. In some cases, the voluntary life benefit can only be offered as a post-tax deduction.