Health Savings Accounts and Exchange Plans
Does a Health Savings Account (HSA) Work With a Qualifying Health Plan Purchased on a Public or Private Exchange?
Yes, HSAs are compatible with many health insurance plans offered on public and private exchanges or online marketplaces including healthcare.gov.
When shopping for health insurance on an exchange, you'll see a designation if the health plan is HSA compatible somewhere near the top of the plan listing – often designated as bronze and sometimes silver. A health plan is generally considered compatible with an HSA if the annual deductible is at least $1,250 for individual coverage and $2,500 for family coverage. Out-of-pocket costs, to include deductibles and copayments, but not premiums, are limited to $6,350 for an individual and $12,700 for a family.
So if you've purchased an HSA-compatible high deductible health plan (HDHP) on a public exchange and you currently own an HSA with HSA Bank, you can keep and fund your account as a way to save and pay for healthcare expenses.
If you have not opened an HSA, don't miss out on the benefits of this unique tax-advantaged account. Sign up for an HSA to get started today!
If you qualify for reduced cost sharing*, you may not be eligible to make contributions to an HSA. So if you haven't finalized your purchase and would like to be eligible to make HSA contributions, you may purchase the plan without the cost-sharing reductions in most states excluding California.
Are You Eligible to Open an HSA?
The main requirement for opening an HSA is having a high-deductible health plan that meets IRS guidelines for the annual deductible and out-of-pocket maximum. To be an eligible individual and qualify for an HSA, you must also meet the following requirements.
You are not covered by any other non-HDHP health plan, such as a spouse's plan, that provides any benefits covered by your HDHP plan.
You are not enrolled in Medicare.
You do not receive health benefits under TRICARE.
You cannot have received medical benefits from Veterans Administration (VA) for any non-service-connected disabilities at any time during the previous three months.**
You cannot be claimed as a dependent on another person's tax return.
You are not covered by a general purpose health care flexible spending account (FSA) or health reimbursement account (HRA). Alternative plan designs, such as a limited-purpose FSA or HRA, might be permitted.
* Cost-sharing reductions limit the out-of-pocket costs for Essential Health Benefits covered by Qualified Health Plans (QHPs) such as deductibles or coinsurance, an individual is responsible for as part of their coverage under a QHP. There are several categories of cost-sharing reductions that are based on annual household income and family size. Each insurance carrier will implement these differently, based on their specific plan design. See your plan details for the cost sharing adjustments.
** Title 38 of the United States Code, Section 101(17) defines "non-service-connected" as, with respect to disability, that such disability was not incurred or aggravated in line of duty in the active military, naval, or air service.
HSA Bank encourages you to reach out to your tax advisor, insurance provider, or trusted financial advisor to learn more about the new public insurance exchanges and how various coverages could impact your situation.