WHO IS ELEGIBLE FOR AN HSA?
Synopsis by Dave Ballard Insurance
To be eligible for a Health Savings Account, an individual must
be covered by a HSA-qualified High Deductible Health Plan (HDHP)
and must not be covered by other health insurance that is not an
HDHP. Certain types of insurance are not considered “health
insurance” (see below) and will not jeopardize your eligibility
for an HSA.
Can I get an HSA even if I have other insurance that pays
medical bills?
You are only allowed to have automobile,
dental, vision, disability and long-term care insurance at the same
time as an HDHP. You may also have coverage for a specific
disease or illness as long as it pays a specific dollar amount when
the policy is triggered. Wellness programs offered by your employer
are also permitted if they do not pay significant medical benefits.
Does the HDHP policy have to be in my name to open an HSA?
No, the policy does not have to be in
your name. As long as you have coverage under the HDHP policy,
you can be eligible for an HSA (assuming you meet the other eligibility
requirements for contributing to an HSA). You can still be eligible
for an HSA even if the policy is in your spouse’s name.
I don’t have health insurance, can I get an HSA?
You cannot establish and contribute to
an HSA unless you have coverage under a HDHP.
I’m on Medicare, can I have an HSA?
You are not eligible for an HSA after
you have enrolled in Medicare. If you had an HSA before
you enrolled in Medicare, you can keep it. However, you
cannot continue to make contributions to an HSA after you enroll
in Medicare.
I am a Veteran, can I have an HSA?
If you have received any health benefits
from the Veterans Administration or one of their facilities, including
prescription drugs, in the last three months, you are not eligible
for an HSA.
I’m active-duty military and have Tricare coverage,
can I have an HSA?
At this time, Tricare does not offer
an HDHP options so you are not eligible for an HSA.
My employer offers an FSA, can I have both an FSA and an
HSA?
You can have both types of accounts,
but only under certain circumstances. General Flexible Spending
Arrangements (FSAs) will probably make you ineligible for an HSA. If
your employer offers a “limited purpose” (limited to
dental, vision or preventive care) or “post-deductible” (pay
for medical expenses after the plan deductible is met) FSA, then
you can still be eligible for an HSA.
My employer offers an HRA, can I have both an HRA and an
HSA?
You can have both types of accounts,
but only under certain circumstances. General Health Reimbursement
Arrangements (HRAs) will probably make you ineligible for an HSA. If
your employer offers a “limited purpose” (limited to
dental, vision or preventive care) or “post-deductible” (pay
for medical expenses after the plan deductible is met) HRA, then
you can still be eligible for an HSA. If your employer contributes
to an HRA that can only be used when you retire, you can still be
eligible for an HSA.
My spouse has an FSA or HRA through their employer, can
I have HSA?
You cannot have an HSA if your spouse’s FSA or HRA can pay
for any of your medical expenses before your HDHP deductible is
met.
I don’t have a job, can I have an HSA?
Yes, if you have coverage under an HDHP.
You do not have to have earned income from employment – in
other words, the money can be from your own personal savings,
income from dividends, unemployment or welfare benefits, etc.
Does my income affect whether I can have an HSA?
There are no income limits that affect
HSA eligibility. However, if you do not file a federal income
tax return, you may not receive all the tax benefits HSAs offer.
Can I start an HSA for my child?
No, you cannot establish separate accounts
for your dependent children, including children who can legally
be claimed as a dependent on your tax return.
I’m a single parent with HDHP coverage but have child/relative
that can be claimed as a dependent for tax purposes, and this
dependent also has non-HDHP coverage. Am I still eligible for
an HSA?
Yes, you are still eligible for an HSA. Your dependent’s
non-HDHP coverage does not affect your eligibility, even if they
are covered by your HDHP.
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