Common use of Beginning of Year Clause in Contracts

Beginning of Year. Your annual contribution for the year is based on your status under the group health plan as of the first day of the plan year (or open enrollment). The annual contribution is deposited into your HRA account on or about January 7. Example: if you elect family coverage and this is your first year in the plan your annual contribution for 2014 is $3,200 for the plan year. The maximum cap is also based on this same status and your previous years in the plan. The amount in your account as of December 31 of that previous year is used to determine your cap. If the employee has claims pending from that previous year (date of service before January 1), they must produce this claim information on or before April 1 of the current plan year to gain credit to the cap.

Beginning of Year. Your annual contribution for the year is based on your status under the group health plan as of the first day of the plan year (or open enrollment). The annual contribution is deposited into your HRA account on or about January 7. Example: if you elect family coverage and this is your first year in the plan your annual contribution for 2014 2017 is $3,200 for the plan year. The maximum cap is also based on this same status and your previous years in the plan. The amount in your account as of December 31 of that previous year is used to determine your cap. If the employee has claims pending from that previous year (date of service before January 1), they must produce this claim information on or before April 1 of the current plan year to gain credit to the cap.