10-10-2022 Council Packet - Laserfiche WebLink

Home Browse Search

© Hitesman & Wold, P.A. 2019 Cafeteria Plan Summary Description (3-11) 41 PART VI. HSA CONTRIBUTION FEATURE 6.1 What benefits are provided? The Cafeteria Plan permits you to elect to make contributions to a health savings account (“HSA”) under the HSA Contribution Feature. Under the HSA Contribution Feature, you provide a source of pre-tax dollars by entering into a salary reduction arrangement with your Employer. Those pre-tax dollars and the Employer contribution, if any, will be contributed to your HSA. You save Social Security and income taxes on the amount of your salary reduction for HSA contributions. Your Employer may also make contributions to your HSA. If so, your Employer will provide additional information about the amount and timing of those contributions. 6.2 Am I eligible and how do I become a Participant? To become a Participant in the HSA Contribution Feature, you must first become a Participant in the Cafeteria Plan. You must also satisfy the eligibility requirements for the HSA Contribution Feature. The HSA Contribution Feature’s eligibility requirements are, in general, the same as the eligibility requirements for the Cafeteria Plan as described in Section 1.4. In addition, you must meet certain other requirements in order to participate in the HSA Contribution Feature. To be eligible, you must: (a) be covered by the Employer’s qualifying high deductible health plan [and] (b) not have any health coverage through the Employer other than coverage under the Employer’s qualifying high deductible health plan , “Permitted Insurance,” and/or “Permitted Coverage”; [and] (c) certify to the Plan Administrator that you are eligible to make HSA contributions at the time of your initial election under the HSA Contribution Feature and periodically thereafter . If you satisfy those requirements, you become a Participant in the HSA Contribution Feature by electing benefits under the HSA Contribution Feature during your initial or subsequent annual enrollment periods. 6.3 What is Permitted Insurance and Permitted Coverage? “Permitted Insurance” is: (a) insurance in which substantially all of the coverage relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities related to ownership or use of property, or similar liabilities as specified by the IRS; (b) insurance for specified disease or illness (e.g., cancer insurance); or (c) insurance that pays a fixed amount per day (or other period) of hospitalization (e.g., hospital indemnity insurance). “Permitted Coverage” is coverage (whether through insurance or otherwise) for accidents, disability, dental care, vision care, or long-term care. Permitted coverage includes some medical reimbursement accounts and health reimbursement arrangements (HRAs), such as limited scope medical reimbursement accounts and HRAs (i.e., the Limited Scope Health FSA provided through this Cafeteria Plan), HRAs for which the payment or reimbursement of medical expenses (except expenses for preventive