To be eligible for a Health Savings Account, you 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. A HDHP has a minimum deductible of $1300 for an individual and $2600 for a family in 2017. In subsequent years, these numbers may be different.
You are only allowed to have auto, 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.
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.
HSAs without health insurance
You cannot establish and contribute to an HSA unless you have coverage under a HDHP.
Medicare and VA benefits
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. If you received any Veterans Administration benefits in the past three months, you are also ineligible to contribute to a HSA.
You can’t have an HSA if you are considered a dependent on somebody’s tax return.
Disqualifying insurance coverage
Even if you have a HDHP, you can still not be eligible for HSAs if you are covered by another insurance policy. For instance, if your spouse has traditional health insurance and you are covered under that, you can’t contribute to a HSA.
You can, however, have some sorts of insurance, including insurance for accidents, long-term care, and dental care. You can also have Flexible Spending Accounts and Health Reimbursement Accounts if they are for limited purposes and reimburse expenses covered by the HDHP after the deductible.
