June 10, 2008

Welcome to Benefits Challenge. Benefits Solved.

Here is a free, fun and intriguing way to test your knowledge. Each edition of the News & Review will include a test on topics such as FMLA, COBRA, FSA, HRA, HSA along with others various topics.

Question: An employer offers a high-deductible health plan that starts on October 1 every year. What approach should the plan take regarding the legal requirements related to the annual minimum deductible and out-of-pocket maximums, which are based on a calendar year?

Your Response: CORRECT

Explanation: Per IRS Notice 2004-50, the correct approach is to apply the limits that are currently in effect on the first day of the plan year.