Can an employer require an employee to participate in health insurance coverage to receive an HRA?
A. Yes, an employer can require an employee to participate in health insurance in order to receive the HRA. However, keep in mind that there may be adverse selection concerns if the HRA is offered to only one of several medical options. For example: Option A: $250/$500 deductible: Option B: $500/$750 deductible; Option C: $1000/$1250 deductible with $500 employer contributions though HRA. Q. Is an employer required to rollover the entire amount of unused annual employer contribution to an HRA, or may the employer limit or cap the amount of credit that may be carried over from year to year (for example, allow employees to carry over only ½ of the maximum annual employer contribution)? A. A cap on the portion that could roll over to the next year is permissible. Also an employer may specify a certain number of dollars that could not carry over to the next year to encourage the use of these funds for preventative care. An HRA may also be designed not to allow funds to roll over.
Related Questions
- Can an employer require employees to take a (confidential) health screening before being allowed to participate in the employers health insurance coverage?
- What if an employer receives the NMSN, but the employee claims health insurance coverage is being provided from another source?
- Can the employer require the employee to file work related medical bills with the employee s health insurance company?
