Frequently Asked Questions
How do I
know if I qualify for an HSA?
Can I get an
HSA if I don't have health insurance?
Does the
HDHP have to be in my name to open an HSA?
What is a
"High Deductible Health Plan" (HDHP)?
How much can I contribute to 'Catch Up'?
I have other
insurance that pays medical bills, can I get an HSA?
If I am on
Medicare can I have an HSA?
If I am 55 + can I contribute
additional funds in 2008?
How do I
know if I qualify for an HSA?
Answer the following questions.
1. Are you covered by a High Deductible Health Plan (HDHP)?
No. You are not qualified to open an HSA.
Yes. Continue to answer the following questions.
2. Are you also covered by any
other health plan that is not an HDHP and that provides coverage for any
benefit covered under the HDHP?
No. Continue to the next question.
Yes. You are not qualified.
3. Are you enrolled to receive Medicare benefits?
No. Continue to the next question.
Yes. You are not qualified.
4. Can you be claimed as a
dependent on another person's tax return?
No. You are qualified to open an HSA.
Yes. You are not qualified to open an HSA.
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Can I get an
HSA if I don't have health insurance?
You cannot establish and contribute to an HSA unless you have coverage
under a HDHP. Return to top
Does the
HDHP have to be in my name to open an HSA?
No, 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 contribution to an HSA).
You can still be eligible for an HSA even if the policy is in your
spouse's name. Return to top
What is a
"High Deductible Health Plan" (HDHP)?
To qualify for an HSA you must have an HDHP. HDHP is an
inexpensive health insurance plan that doesn't normally pay for the
first several thousand dollars of health care expenses but will cover
after you have reached the maximum amount of your deductible. Your
HSA is available to help you pay for the expenses your plan does not
cover.
For 2008, in order to qualify to open
an HSA, your HDHP minimum deductible must be at least $1,100 for
individual or $2,200 for family coverage. The annual out-of-pocket
including deductibles and co-pays) for 2008 can not exceed $5,600 and
$11,200, respectively. This maximum out-of-pocket expense includes deductibles, co-payments, but not premiums.
HDHPs can have first dollar coverage (no
deductible) for preventative care and apply higher out of pocket limits
and copays and coinsurance for non network services.
The annual contribution limit on deductions is as follows:
Calendar year 2008 maximum contribution levels** for an individual is $2,900 and $5,800 for a family.
**Remember that the maximum contribution is generally the lesser of the
indexed amount or the deductible of the HDHP.
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How much can I contribute to 'Catch Up'?
Individuals age 55 and older, who are covered by an HDHP, can make additional contributions each year until he/she enrolls in Medicare. The additional catch-up contributions allowed are as follows:
2008 $900
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I have other
insurance that pays medical bills, can I get an HSA?
You are 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.
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If I am on
Medicare can I have an HSA?
You are not eligible for an HSA after
you enroll 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.
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If I am
55+ can I contribute additional funds in 2008?
Yes, you can contribute an
additional $900. Return to top |
