Welcome to the second part of the Health Savings Account (HSA) blog topics. Today we are going to focus on the Educate aspect of Healthy Solutions Insurance.
What does it mean to have a qualified HDHP?
A qualified high-deductible health plan (HDHP) has the following elements:
- Minimum deductibles
- Limit on out-of-pocket expenses
- Allowance to cover preventive care
Can anyone have a HSA?
There are no income limits, but there are some eligibility requirements, in addition to your HDHP:
- You can’t be enrolled in Medicare. (See Next Question)
- You can’t have any non-permitted coverage. (See Next Question)
- You can’t be claimed as someone else’s tax dependent.
What insurance can I have with an HSA?
You can’t have any coverage other than the HDHP. However, there are some other plans that you may have and still be eligible for the HSA. These include the following.
- Workers’ compensation
- Medical liability for personal property (for example, car insurance)
- Coverage for a specific illness or disease
- A daily fixed amount for a hospital stay
- Long-term care (LTC)
- Employee Assistance Program (EAP)
You cannot have Medicare. Once you enroll in Medicare, you are no longer eligible to make contributions to your HSA. Your eligibility to make contributions to the HSA will cease on the date of your enrollment in Medicare. Going forward, even though you are no longer eligible to contribute to an HSA, you may continue to use your HSA funds.
Once I know I am eligible, how much could I contribute annually to HSA?
For 2016, here is what you need to know about the annual contributions to your HSA:
- Individuals (self-only coverage) – $3,350 (no change