Reimbursing HDHP Deductible | Q&A

Q. Can a company buy a high deductible health plan (HDHP) and reimburse employees for their deductible using a health reimbursement arrangement (HRA)?

A. An HRA that covers the deductible on an HDHP will make the employee ineligible to contribute to a health savings account (HSA). The HRA would need to be a limited purpose HRA or post-deductible HRA if the employee wants to contribute to an HSA.

_{As a United Benefit Advisors® (UBA) Partner Firm, Strategic Services Group (SSG) provides Answers to the ‘Question of the Month’ which are provided by Kutak Rock. Kutak Rock provides general compliance guidance through the UBA Compliance Help Desk, which does not constitute legal advice or create an attorney-client relationship. Please consult your legal advisor for specific legal advice.}