A Health Savings Account
(HSA) is a special account owned by an individual where
contributions to the account are to pay for current and
future medical expenses. HSA’s are used in conjunction
with a “High Deductible Health Plan” (HDHP).
A
qualified HDHP is insurance that does not cover first dollar
medical expenses (except for preventive care). It can be
an HMO, PPO, or indemnity plan, as long as it meets the
requirements. An HDHP health insurance plan has a minimum
deductible of $1,200 for self-only coverage and $2,400 for
family coverage. Those amounts are indexed for inflation.
The annual out-of-pocket (including deductibles and co-pays)
cannot exceed $6,050 for self-only coverage and $12,100
for family coverage. Those rates are also indexed for inflation.
HDHP’s must apply costs of prescription drugs to the
annual deductible or the individual may not
contribute to an HSA.
Who is eligible for HSA’s?
Any
individual that: |
| • |
Is
covered by an HDHP |
| • |
Is
not covered by other health insurance |
| • |
Is
not enrolled in Medicare |
| • |
Can’t
be claimed as a dependent on someone else’s tax
return |
There
are no income limits on who may contribute to an HSA. There
is also no requirement of having earned income to contribute
to an HSA.
Other
health coverage that is allowed for you to still be
eligible for an HSA include: |
| • |
Specific
disease or illness insurance and accident, disability,
dental care, vision care and long-term care insurance |
| • |
Employee
Assistance Programs, disease management program
or wellness program
-These
programs must not provide significant benefits in
the nature of medical care or treatment
|
| • |
Drug
Discount cards |
| • |
Eligibility
for VA Benefits
-Unless
you have actually received VA health benefits in
the last 3 months.
|
Click here for a listing of qualified medical expenses
|
