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HSA Grab Bag Rules

The Treasury Department and the IRS released IRS Notice 2008-59 on June 25, 2008, now known as the "HSA Grab Bag" rules. This notice contained 42 frequently asked questions and answers that were intended to help employers clarify certain matters surrounding Health Savings Account (HSA) administration. There are too many items to address in a high-level "who," "what," "when" and "how" summary. For your convenience, provided below is a list identifying the questions in IRS Notice 2008-59. We suggest that employers who administer an HSA review the notice in detail.

Eligible Individuals
Q&A-1. Payment of HDHP premiums by an HRA not disqualifying coverage
Q&A-2. Disqualifying benefits before HDHP minimum deductible satisfied
Q&A-3. Employer reimbursement of medical expenses before HDHP minimum deductible satisfied
Q&A-4. HDHP with embedded deductibles & post-deductible HRA or health FSA
Q&A-5. Eligible for Medicare Part D & contributions to HSA
Q&A-6. Enrolled in Medicare Part D & contributions to HSA
Q&A-7. HDHP and other high deductible coverage
Q&A-8. HDHP and HRA or health FSA that reimburses family members before minimum HDHP deductible satisfied
Q&A-9. Disregarded coverage or preventive care through Department of Veterans Affairs
Q&A-10. Access to healthcare that is free or charges below fair market value
Q&A-11. Family HDHP coverage and dependents with disqualifying coverage

HDHPs
Q&A-12. Changing from family HDHP to self-only HDHP
Q&A-13. Different deductibles for specific benefits
Q&A-14. Benefits limited to hospitalization or in-patient care
Q&A-15. Expenses that apply towards meeting deductible

Contributions
Q&A-16. Contribution limits for individuals with family coverage & dependents with non-permitted coverage
Q&A-17. Contribution limits for married couples with different types of HDHP coverage
Q&A-18. Contribution limits for married couples who each have family HDHP coverage
Q&A-19. Contribution limits for months when covered by an HDHP
Q&A-20. Rollovers from an existing HSA to a new HSA
Q&A-21. Employer contributions for prior year
Q&A-22. Catch-up contributions for spouses
Q&A-23. Employer contributions to an employee who was never an eligible individual
Q&A-24. Error resulting in excess contributions
Q&A-25. Employer contributions to an employee who ceases to be an eligible individual
Q&A-26. Employer contributions to HSA of employee's spouse

Distributions
Q&A-27. Debit cards
Q&A-28. Third party authorization
Q&A-29. Payment of Medicare Part D premiums
Q&A-30. Medicare premiums for spouse
Q&A-31. Continuation coverage premiums
Q&A-32. Premiums for a dependent receiving unemployment benefits
Q&A-33. Expenses for a child claimed as a dependent by another

Prohibited Transactions
Q&A-34. Borrowing from HSA
Q&A-35. Loan from trustee to HSA
Q&A-36. Pledging HSA as security for a loan
Q&A-37. Consequences for entering into a prohibited transaction

Establishing an HSA
Q&A-38. When an HSA is established
Q&A-39. Not treating as established before state law considers HSA established
Q&A-40. Establishment date for rollovers
Q&A-41. Establishment date for successive HSAs

Administrations
Q&A-42. Reporting HSA administration & maintenance fees withdrawn by the trustee from an HSA

Compliance Quarterly is being provided as an informational tool. It is recommended that plans consult with their own experts or counsel to review all applicable federal and state legal requirements that may apply to their group health plan. By providing this publication and any attachments, Meritain Health is not exercising discretionary authority over the plan and is not assuming a plan fiduciary role, nor is Meritain Health providing legal advice.