Answer Bank Category: Selectivity rules for MSAs?

Question:

We have had a medical savings account (MSA) for years. Years ago, we went to a high-deductible health plan in order to curtail the rise in health insurance costs. At that time, we set up an MSA for our full-time employees where the company puts in $2,000 per year to help in offsetting the new deductible.

With the ACA, we have had to increase our offering to our hourly paid production employees who were not offered coverage when the MSA was established.

Is it possible to continue to have the MSA only for those employees who were previously eligible for health coverage, and not include those newly eligible under the ACA?

Answer:


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Question:

We have always provided health coverage to our office staff and managers at no cost. With the ACA, we now have to offer it to our line workers as well or face a penalty.

Can we still offer our office staff and managers coverage at zero cost but charge line workers for a portion of their coverage?

Answer:


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