The Basics - Qualifying Plans - HSA Contributions - HSA Investments - HSA Distributions

Q: How do I set up my Health Savings Account?

Qualifying Plans:

- What is a "qualifying high-deductible health plan"?
-


Only certain plans are eligible to be used in conjunction with health savings accounts.  A high-deductible health insurance plan is a health insurance plan with a minimum deductible of $1,250 for self-only coverage and $2,500 for family coverage.

The maximum out-of-pocket expense for allowed costs is $6,350 for self-only coverage and $12,700 for family coverage in 2014.  Other restrictions apply, including reporting requirements established by the IRS. For more information on those restrictions, please visit the IRS page on HSAs.

back to top

- How do I know if my health plan is an HSA-qualifying high-deductible health plan?
-


The health insurance company or plan administrator will provide a written statement verifying this status.  The words "qualifying high-deductible health plan" or a reference to IRC Section 223 will be included in the declaration page of the policy or in another official communication from the insurance company.  If this documentation is not provided or available, it is NOT a qualifying plan.

back to top

- What makes a health insurance plan HSA-qualified?
-


The plan must meet the deductible and other design requirements that are adjusted each year, and the health insurance company must agree to report the list of qualifying policyholders to the IRS.  The Department of Treasury will review and qualify health plans at the request of the sponsoring organization.  Not all high-deductible health insurance plans are HSA-qualified even if they meet deductible and out-of-pocket requirements.

back to top

- Why are all health insurance policies that meet the stated requirements for high-deductible health insurance plans not considered HSA-qualified?
-


All high-deductible health insurance plans are not considered HSA-qualified in large part because the health insurance company must agree to report the list of qualifying policyholders to the IRS.  Health insurance companies must also be willing to meet both the federal requirements as well as the state insurance requirements.

Some sticking points are "per person deductibles" and "mandated coverage" that may be required under state insurance laws but are disallowed under the federal HSA laws.  This may involve considerable expense that insurance companies are not willing to assume at this time.

back to top

- With a high-deductible health plan, will I have to pay full price for doctor visits, or will I receive a PPO discount?
-


Most qualifying high-deductible health plans are preferred provider organization (PPO) plans, though there are some indemnity plans that do not have a PPO network.  If you have a PPO plan, any visits to a doctor in your PPO network will be re-priced before you are billed according to the discount negotiated by the PPO.  Having access to a PPO network can mean substantial discounts in what you pay for your health care, even before you meet your deductible.

back to top

- Am I eligible for an HSA if I have an HSA-qualified plan as my primary coverage but am also covered by my spouse’s employer-provided (non-HSA) plan?
-


You can only contribute to your HSA when you are enrolled in an HSA-qualified plan.  If you are also covered by a spouse’s non-HSA plan, then you would no longer qualify to contribute to your HSA.  However, you can still use the money in it to pay for qualified medical expenses, or you can let it continue to grow on a tax-deferred basis.

back to top


Opt Out of Obamacare with a Short-term Plan
Short Term Health Insurance Premiums are up to 60% Cheaper

No matter what Obamacare health insurance plan you ended up with, you may find it less expensive to have a Short-term health insurance plan.  Learn more about these plans, get instant quotes, and sign up online for a Short-term health insurance plan that can be in effect tomorrow!


HSA for America
749 S. Lemay Ave, Suite A3-116
Fort Collins, CO 80524
Contact Us

Click for the BBB Business Review of this Insurance - Accident & Health  in Fort Collins CO

Disclaimer: All information on this website is relayed to the best of the Company's ability, but does not guarantee accuracy. Information may be out of date. The content provided on this site is intended for informational purposes only and does not guarantee price or coverage. This site is not intended as, and does not constitute, accounting, legal, tax, and/or other professional advice. Determination of actual price is subject to Carriers.