CDHP Flashcards
1
Q
Disadvantages to CDHP
A
- EE minimizes treatment for preventative care/minor expense
- Favor health and rich
- Doesn’t fix uninsured problem
- Just shifts the costs to EEs
2
Q
Disadvantages of HSA
A
- Contribution limits may leave EE on hook for high medical costs during first year
- Pre-funding HSA counts towards cadillac tax
3
Q
EE HSA Eligibility Rules
A
- Must be covered by HDHP
- Plan must be self-insured or insured meeting criteria
- Individual can’t be claimed as dependents
4
Q
Compliant HSA
A
- Min Deductible: 1350/2700
- Max OOP Limit: 6750/13500
- Contribution Limit: 3400/6750
5
Q
Definition of HDHP
A
-Must not offer any benefit beyond preventative care before those covered by the plan meet their annual deductible
6
Q
HRA Contributions
A
- Solely by ER
- EE pay part of premium for underlying medical expense coverage
7
Q
HSA Contributions
A
- ER & EE: 3400/6750
- Pretax salary contribution for EE thru cafeteria plan
- ER $ belong to EE
- ER can only contribute if provide EE with HDHP
- Unused contributions are tax free and carry over
8
Q
Account Growth
A
- Unused funds tax free and carry forward
- Excludible from account holder’s gross income as long as not covered by other insurance
- Distrib. before 65 = 20% tax free
- Post 65 is tax free but reported with gross income
- May choose beneficiary
- Can use post-termination
9
Q
Distributions from HSAs
A
- Funds can pay for qualified unreimbursed medical expenses
- Drugs that require Rx
- Insulin
10
Q
HRA Permitted Under ACA
A
- Permitted if integrated
- Must be in primary HC plan
- Not integrated if paired with individual market coverage
11
Q
Challenge of HSAs with the ACA
A
- Standards of HSA plans may not meet 60% AV
- Unknown if HSA plan contributions would qualify
12
Q
HSA & Cadillac Tax
A
- Pre-tax contributions counted toward value of plan for Cadillac Tax
- Makes it easier to get hit
