Jump directly to the Content Jump directly to the content

Q&A: Health Savings Accounts

Can we legally designate medical allowances for our pastors' health plan?

Last Reviewed: July 27, 2020

We are entertaining the idea of changing our health care coverage to a HSA (Health Saving Account)-compatible policy. Presently our three pastors receive a designated amount of medical allowances each year to help them cover the costs of out-of-pocket moneies that go toward their deductible. Is it legal to still set aside a designated medical allowance within our budget if we go to a HSA-compatible policy?

Health Saving Accounts (HSA's) are medical reimbursement accounts that are regulated through the IRS. An HSA is generally only permitted in conjunction with a high deductible health plan. So, depending on how you use the medical allowance, it may impact whether it is legally permitted.

I'm assuming with your current plan, the pastoral staff submits receipts for medical expenses and then is reimbursed up to a designated amount. When you switch to a high deductible plan, it makes sense ...

Join now to access this member-only content

Become a Member

Already a member? for full access.

Related Topics:
Posted:
  • February 23, 2010
  • Last Reviewed: July 27, 2020

Related ResourcesVisit Store

Understanding Church Insurance
Understanding Church Insurance
Understand your church's insurance needs to be assured you have adequate coverage.
Church Compensation - Second Edition
Church Compensation - Second Edition
From Strategic Plan to Compliance
2021 Church & Clergy Tax Guide (Book)
2021 Church & Clergy Tax Guide (Book)
The most comprehensive and authoritative tax guide available.
Best Practices for Technology Usage
Best Practices for Technology Usage
Establish policies and best practices to govern the use of technology for church staff.