Employers with HSA's (health insurance, fund, pay, deductible)

[Bethvan]

Hi,
Any employers out there with HSA plans? We have one & we're wondering how to create a policy for future employees. For example, let's say we pay 100% of the monthly insurance premium and contribute 100% of the annual deductible for each employee (regardless of type of coverage) for the first year. What do we do about people who are hired mid-year? Or those who are currently part-time & go full time becoming eligible for the HSA? And marriage, divorce, having children, etc?... We want to be fair to all employees.
Thanks

[Niners fan]

First off, that is a very generous benefit you are offering. I have 30 employees and we cover the entire premium and fund the first half of their deductible. It is expensive but I have pointed out to new hires that even though their pay might be a little less the fact that they are not paying several hundreds of dollars each month for health insurance usually more than offsets the pay.

Here is what we do. If someone joins the company mid-year then we prorate the amount we put into their HSA. I realize that the health insurance company does not prorate the deductible but I figure the later in the year they gain coverage then the smaller the chance that they will meet the deductible for the year and have to pay out of pocket.

If someone gets married or goes full-time then we adjust the coverage at no charge to the employee. In a case like that then I would also add to their HSA a pro-rated amount.

By the way, the law of HSAs changed last year (I think it was last year). Now you do not have to fund all employees' HSAs with the same amount or the same percentage of deductible.