01/19/2007   Get to know the Health Savings Account contribution comparability rules

On July 28, 2006, the U.S. Department of the Treasury released final regulations concerning Health Savings Account (HSA) comparability rules. The final regulation (RIN1545-BE30) was published in the Federal Register.

Comparability rules require that an employer contributing to one employee’s HSA must contribute comparable amounts to all employees who have HSAs. The final regulation is designed to accommodate the needs of employers for flexibility in designing health benefits while preserving the protections of the comparability rules.

Highlights of the final rule include:

• An exception from the comparability requirements for groups of collectively bargained employees.
• The ability to make different comparable contributions based on variations of family coverage.
• Clarification of the exclusion from the comparability requirement for employer contributions made through a cafeteria plan. Specifically, the final regulation states that if employees are allowed to contribute to an HSA by salary reduction through a cafeteria plan, all employer contributions to an employee’s HSA will be treated as being made through a cafeteria plan (and thus excluded from the comparability rules).

The regulations were effective July 31, 2006, and apply to employer contributions to HSAs made on or after Jan. 1, 2007.

Go to the Treasury Department’s Web site to see the press release and the final regulations.

If you have questions about HSA contribution comparability rules, please talk with your  Asuris Sales contact.

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