Q.- We offer our employees an HRA plan through which we fund 75% of the deductible for our high deductible health plan. Can an employee have a health savings account and also participate in the HRA?
A.- No. To be eligible for an HSA, an individual cannot have health coverage other than HDHP coverage. This means that the person cannot participate in an HRA, unless the HRA is "limited purpose" and reimburses only dental or vision expenses, or the HRA is "post deductible" and kicks in only after the annual HDHP deductible is satisfied. The HRA described does not seem to be limited purposes or post deductible.