Small busines HSA over age 65
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.
Q: My company started a health savings account health plan and everyone except me received a cash deposit into their account. Since I am over age 65, I am not eligible for an HSA. My employer says he would pay me the same amount in cash, but that it might not be legal to do so. Is this true?
A: It sounds like the underlying problem is that your company set up the HSA insurance and individual accounts as a "stand alone" health plan rather than integrating this into an appropriate tax-qualified Consumer Driven Health Plan. This almost always reslults in a lower level of employee satisfaction than an HSA as an option under another type of health plan. Your company should adapt a Health Reimbursement Arrangement (HRA) that incorporates the HSA that will allow you to receive benefits comparable to other employees even without the HSA. Fortunately, this is fast and easy to fix, and you can still receive full benefits for this current year. See the HRA page at FreedomBenefits.org for details. The article listed below gives step-by-step instructions.
Summary
More resources:
How to Start a Successful Consumer Driven Health Plan
FreedomBenefits.net