Sage-Tips

How does an HSA work with secondary insurance?

A. The HSA is only available if paired with a qualified High Deductible Health Plan. If your secondary coverage is not through a qualified High Deductible plan, you will not be eligible for a Health Savings Account.

Is HSA separate from insurance?

It provides insurance coverage and a tax-advantaged way to help save for future medical expenses. The HDHP/HSA or HRA gives you greater flexibility and discretion over how you use your health care dollars, because the funds can be used to cover qualified medical expenses that are not covered by your health plan.

Can I use my HSA card for copays?

You can use HSA funds to pay for deductibles, copayments, coinsurance, and other qualified medical expenses. Withdrawals to pay eligible medical expenses are tax-free.

What happens to HSA money if you change insurance?

A: You own your account, so you keep your HSA, even if you change health insurance plans or jobs. If you no longer are enrolled in a high-deductible health plan, you are not eligible to make new contributions to your HSA, but you can continue to withdraw funds for qualified expenses.

Can I use my HSA for my spouse if he is not on my insurance?

Your spouse does not need to be covered on your High Deductible Health Plan (HDHP). While the amount you can contribute to your HSA is determined by whether you have single-only or family coverage, there are no limitations on using money in your HSA to pay for a spouse’s unreimbursed medical expenses.

How does an HSA work for employers?

If your employer offers an HSA, it typically works just like a traditional 401(k): Your contribution is taken out of your paycheck on a pre-tax basis. Your employer may also kick in a contribution. What’s more, just about anyone can contribute to your HSA: spouses, parents, even friends.

What can I use my HSA card on?

HSA – You can use your HSA to pay for eligible health care, dental, and vision expenses for yourself, your spouse, or eligible dependents (children, siblings, parents, and others who are considered an exemption under Section 152 of the tax code).

What is an HSA and how does it work?

How an HSA works:** An HSA is offered with a qualified High-Deductible Health Plan (A qualified High Deductible Health Plan (HDHP) typically has lower premiums/plan contributions and higher deductibles than a traditional health plan) and the account is opened through the HSA provider chosen by your employer.

How do I get an HSA for health insurance?

Your employer may offer an HSA option, or you can start an account on your own through a bank or other financial institution. To qualify, you must be under age 65 and have a high-deductible health insurance plan. If you have a spouse who uses your insurance as secondary coverage, he or she also must be enrolled in a high-deductible plan.

Can I open an HSA if my employer doesn’t offer one?

Yes, you can open a health savings account (HSA) even if your employer doesn’t offer one. But you can make current-year contributions only if you are covered by an HSA-qualified health plan, also known as a high deductible health plan (HDHP).

How much can you contribute to a health savings account (HSA)?

For both Health Savings Accounts and Health Reimbursement Arrangements, caps are in place regarding contributions. An HSA has a maximum contribution of $3,400 from both the employee and the employer for single employees. For employees who have dependents on their insurance plan, the contribution is $6,850.