Health Savings Accounts (HSA’s) are a fantastic financial tool that can be used to protect you from surprising health problems. After an individual has suffered an injury or develops a disease, the last thing they want to worry about is how they’re going to pay for treatment. But far too many people don’t take advantage of HSA’s because they simply aren’t well informed. Because many people don’t have an accurate understanding of what and HSA is and how they function, a lot of people end up having the same questions. The following are some of the most-asked questions regarding HSA’s.
What is an HSA?
An HSA is a special type of account that helps you save money for healthcare. As opposed to other forms of insurance, an HSA offers you greater control over your money and how it is spent to acquire healthcare services. And you don’t only control the money in the account for healthcare purposes. Because the money in the account belongs to you, you can even withdraw funds from the account and use them for other expenses in the future.
Who Can Qualify for an HSA?
Not everyone is eligible for an HSA, and a person must first have a High Deductible Health Plan (HDHP) that is qualified for an HSA. In addition, an eligible person cannot be covered by other forms of insurance that are not HDHP. However, some forms of insurance aren’t technically classified as health insurance, and they will not ruin your eligibility. Furthermore, you cannot be dependent on Medicare in order to qualify for an HSA.
What Forms of Insurance Won’t Ruin My Eligibility Status?
Believe it or not, other forms of insurance can be used to pay for medical bills in the event of an accident and they won’t ruin your eligibility status for an HSA. In the event that you collect from other forms of insurance such as auto, disability, vision, or dental and then use that money for healthcare, you will still be eligible for an HSA.
Does Medicare Prevent Me from Getting an HSA?
There are a few caveats and stipulations regarding Medicare with an HSA. If you already have Medicare, you are not eligible for an HSA. On the other hand, if you already set up an HSA before you had ever enrolled in Medicare, you can keep your HSA funds. But the catch is that you will not be able to make further contributions to your HSA after your Medicare enrollment.
Can I Create HSA’s for My Kids?
Unfortunately, the answer to this questions is no. You cannot create individual HSA’s for each of your children. This also includes people that are legally claimed on tax forms as dependents.
How Much Can I Add to My HSA Annually?
There are a couple different rules that determine how much you can add to your HSA. In 2015, individuals can add $3,350 dollars per year and family plans can add $6,650 per year. However, in 2016 family plans will be able to add $6,750 per year.
Seeking HSA Assistance
If you want to learn more about HSA’s to find out if they are a good fit for your family, contact Benefits Age today. Our knowledge and understanding of HSA’s can help protect your health for years to come.