Employee Benefits Bulletin, May 2002
TIDBITS, TRICKS & TRAPS: DEFINED CONTRIBUTION HEALTH PLANS WHY AM I HEARING SO MUCH ABOUT THEM? AND, WHY HASN'T THE LSRS EMPLOYEE BENEFITS BULLETIN DISCUSSED THEM YET?
Defined contribution health plans are being heralded by insurance companies as the employer's solution to the potentially inhibitive, rising cost of health insurance. Defined contribution health plans (sometimes referred to as "health spending accounts") come in a variety of forms, some of which have a questionable basis for their favorable tax benefits. At the American Bar Association Tax Section meeting in Washington D.C. this month, the IRS informally indicated that it would release guidance in the very near future on the acceptable forms a defined contribution health plan may take. Once this guidance has been published, the Employee Benefits Bulletin will tackle the subject.
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