Connecticut Supreme Court says HSAs are not retiree coverage

The facts that framed the dispute are straightforward. Groton and the police union moved active officers from a preferred provider option (PPO) to a high-deductible health plan (HDHP) effective January 1, 2018. Under the 2016-2020 CBA, active officers were required to open and maintain HSAs. The town agreed to fund 50 percent of each active officer’s annual in-network deductible –$1,000 for single coverage and $2,000 for two-person or family coverage – while the HDHP deductibles themselves remained $2,000 and $4,000. For employees legally ineligible to open an HSA, the town provided the same 50 percent amount on a taxable basis. Retirees under age 65 were required to enroll in the HDHP by July 1, 2018, but they did not receive the HSA contributions.