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Release Date: 04/07/2004
Release Number: 04-626-NAT
Contact Name: Gloria Della
Phone Number: 202.693.8664
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Washington, DC - The U.S. Department of
Labor’s Employee Benefits Security Administration (EBSA) today released
a Field Assistance Bulletin (FAB) providing enforcement guidance to field
investigators on Health Savings Accounts (HSAs). |
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“Today’s guidance will facilitate the adoption of
health savings accounts by employers. HSAs will lead to more choices and
lower health care costs for American workers and their families, which is
a priority for this Administration, ” said U.S. Labor Secretary Elaine
L. Chao. |
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HSAs, created by the Medicare Modernization Act signed
by President Bush on December 8, 2003, are designed to help individuals
pay for current health expenses and save for future qualified health
expenses on a tax-free basis. To be eligible for an HSA, an individual
must be covered by a High Deductible Health Plan (HDHP). Since enactment,
a number of questions have been raised concerning whether HSAs constitute
employee welfare benefit plans governed by Title I of the Employee
Retirement Income Security Act (ERISA). |
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The guidance makes clear that while private-sector
employer-sponsored HDHPs are group health plans subject to ERISA’s
reporting, disclosure, fiduciary responsibility and other requirements,
HSAs generally will not constitute ERISA-covered employee benefit plans.
The guidance also clarifies that an employer can make contributions to the
HSA of an eligible individual without being considered to have established
or maintained the HSA as an ERISA-covered plan, provided that the
employer’s involvement with the HSA is limited. |
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The FAB is part of the department’s ongoing
compliance assistance program to help employers, plan officials and
service providers and other comply with ERISA. Field Assistance Bulletins
are available on the Internet at www.dol.gov/ebsa. |
U.S.
Labor Department news releases are accessible on the Internet at
www.dol.gov. The information in this news release will be made available
in alternate format upon request (large print, Braille, audio tape or
disc) from the COAST office. Please specify which news release when
placing your request at 202.693.7765 or TTY 202.693.7755. The U.S.
Department of Labor is committed to providing America's employers and
employees with easy access to understandable information on how to comply
with its laws and regulations. For more information, please visit
www.dol.gov/compliance. |
