---
title: On-site Clinics, HSA Eligibility, and IRS Guidance
description: Schools, cities, and counties who offer an on-site health clinic and an HSA, need to make sure that they are IRS compliant or employees could lose their HSA
---

[Employee Benefit News for School, City and County Employers ](https://blog.nisbenefits.com)

# [On-site Clinics, HSA Eligibility, and IRS Guidance](https://blog.nisbenefits.com/clinics-hsa-eligibility)

 Written by [Mark Williams](https://blog.nisbenefits.com/author/mark-williams) | Sep 21, 2017 4:37:06 PM

Due to the potential tax savings to an individual who uses an HSA (Health Savings Account), federal law imposes strict eligibility requirements for HSA eligibility/contributions. To establish an HSA and make contributions, the employee must be considered eligible. To be HSA-eligible, an employee must:

1. Be covered by an HSA-eligible High Deductible Health Plan (HDHP) plan;
2. Not be covered by any health plan that provides coverage below the minimum required HDHP deductibles;
3. Not be enrolled in Medicare; and
4. Not be eligible to be claimed as a dependent on another persons’ tax return.

According to [IRS Notice 2008-59](https://www.irs.gov/pub/irs-drop/n-08-59.pdf), the IRS addressed how an on-site clinic may impact employees’ HSA eligibility. In a nutshell, if an employer’s on-site health clinic provides *significant* medical benefits to employees for free or at a reduced cost this may disqualify them from being HSA eligible.

School, city, and county employers who want to preserve their employees’ HSA eligibility and offer on-site clinic services would be wise to design the plans to be compatible. Some ways to do this may include:

- Limit the health services provided to employees to include first aid, care for workplace illness or injuries, preventative care, or other types of permitted coverage.
- Provide clinic access only to employees who have satisfied their HDHP deductiblefor the year.
- Require employees to pay the fair market value for the medical services received at the clinic and apply those costs towards their HDHP deductible.

Download this [bulletin](https://blog.nisbenefits.com/hubfs/Blog%20-%20supporting%20documents/bulletin%20-On-site%20Health%20Clinics%20Impact%20on%20HSA%20Eligibility%209-17.pdf) to learn more about  on-site clinic and HSA compatibility or contact your [NIS Benefits Consultant](http://www.nisbenefits.com/proactive-benefit-consulting-services/proactive-benefits-consulting-team/).

 

[View full post](https://blog.nisbenefits.com/clinics-hsa-eligibility)

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