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Do you have to have an HSA with a high deductible health plan?
You can only open and contribute to a HSA if you have a qualifying high-deductible health plan. HSAs have no use-it-or-lose-it provision. Any funds still in the plan at the end of the year can be rolled over indefinitely.
Do I need an HSA if I have health insurance?
While you can use the funds in an HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have a High Deductible Health Plan (HDHP) — generally a health plan (including a Marketplace plan) that only covers preventive services before the deductible.
What happens to my HSA if I switch to a non HDHP?
If you never have HDHP coverage again, your HSA will be a one-way street: Withdrawals only, but no contributions (although the balance could continue to grow due to interest or investment earnings). But keep in mind that you might become HSA-eligible again in the future.
Can I still contribute to my HSA if I change plans?
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.
Do HDHP plans cover prescriptions?
The HDHP does not include coverage for prescription drug benefits. Individual A is also covered by another plan (or rider) which provides prescription drug benefits. The prescription drug coverage is not subject to a deductible, but requires a copayment for each prescription.
Can I set up an HSA if I Have Another health plan?
If you are covered by another health plan (such as through your spouse’s employer), that health plan must meet the criteria outlined above for a qualified HDHP. If you are enrolled in a health plan that does NOT meet the criteria for a HDHP, you may NOT set up an HSA and you must stop contributing to any HSA you do have.
Can I leave a HDHP in an HSA account?
You’ll be glad to know that it doesn’t trigger taxes, penalties, or hurt your finances in any way! If you leave a HDHP while you have an HSA, you can still spend the funds or use them to reimburse yourself for qualified medical expenses until you empty the account.
Do I have to pay taxes on an HDHP?
HSAs may earn interest, which is not subject to taxes. HDHPs are available in most areas, and may be available as qualified health plans at the Bronze, Silver, or Gold levels on HealthCare.gov. HDHPs may also be available for enrollment directly through health insurance companies and may be offered by your employer.
Can I add new deposits to my HDHP account?
You just can’t add new deposits to the account. If you enroll in a HDHP again in the future, you can pick up where you left off and start making contributions to the same HSA again. Or you can open a new HSA if you emptied out and closed the old one.