Frequently Asked Questions Regarding HSAs

I don't have health insurance, can I get an HSA?
You cannot establish and contribute to an HSA unless you have coverage under a HSA eligible plan.

I'm on Medicare, can I have an HSA?
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.

I am a Veteran, can I have an HSA?
If you have received any health benefits from the Veterans Administration or one of their facilities, including prescription drugs, in the last three months, you are not eligible for an HSA.

I'm active-duty military and have Tricare coverage, can I have an HSA?
At this time, Tricare does not offer an HSA eligible plan option so you are not eligible for an HSA.

My employer offers an FSA, can I have both an FSA and an HSA?
You can have both types of accounts, but only under certain circumstances.  General Flexible Spending Arrangements (FSAs) will probably make you ineligible for an HSA.  If your employer offers a "limited purpose" (limited to dental, vision or preventive care) or "post-deductible" (pay for medical expenses after the plan deductible is met) FSA, then you can still be eligible for an HSA.

My employer offers an HRA, can I have both an HRA and an HSA?
You can have both types of accounts, but only under certain circumstances.  General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA.  If your employer offers a "limited purpose" (limited to dental, vision or preventive care) or "post-deductible" (pay for medical expenses after the plan deductible is met) HRA, then you can still be eligible for an HSA.  If your employer has an HRA that can only be used when you retire, you can still be eligible for an HSA.

My spouse has an FSA or HRA through their employer, can I have an HSA?
You cannot have an HSA if your spouse's FSA or HRA can pay for any of your medical expenses before your HSA eligible plan deductible is met.

I don't have a job, can I have an HSA?
Yes, if you have coverage under an HSA eligible plan. You do not have to have earned income from employment -- in other words, the money can be from your own personal savings, income from dividends, unemployment or welfare benefits, etc.

Does my income affect whether I can have an HSA?
There are no income limits that affect HSA eligibility.  However, if you are not subject to income tax, you may not receive all the tax benefits HSAs offer.

Can I start an HSA for my child?
No, you cannot establish separate accounts for your dependent children, including children who can legally be claimed as a dependent on your tax return.

I'm a single parent with HSA eligible plan coverage but have child/relative that can be claimed as a dependent for tax purposes, and this dependent also has non-HSA eligible plan. Am I still eligible for an HSA?
Yes, you are still eligible for an HSA.  Your dependent's non-HSA eligible plan coverage does not affect your eligibility, even if they are covered by your plan.

Are HSAs good for women?
While preventive health care for women can be more expensive per year, most HSA plans make preventative care a first-dollar exception to the high deductible, and/or deposit funds in the HSA so that women can purchase care on their own. Women should carefully check on preventative care coverage when shopping health plans. Look for a policy that provides coverage of preventative care services that you will use. This will save you money in the long run and will help you maintain and improve your health.

I'm planning for a family and anticipate increased health expenditures in the near future. Is an HSA a good idea for me?
HSA eligible plans must limit the annual out-of-pocket expenses paid by the individual or family. This includes the deductible amount. The maximum annual out-of-pocket expenses for 2008 are $5,600 for individuals and $11,200 for a family and for 2009 are $5,800 for individuals and $11,600 for a family.

I have an existing medical savings account (MSA). Can I roll the amount to an HSA?
Yes. Individuals with existing MSAs can either retain them or roll the amount over into a new HSA.

Do I need to get approved to setup an HSA?
No pre-approval or authorization by the IRS is necessary to establish an HSA. When you set up an HSA you will need to work with a trustee (a qualified HSA trustee can be a bank, credit union, insurance company, or anyone already approved by the IRS).

Take a few minutes to review a self-paced Online Briefing on HSAs.