Depending on what kind of insurance plan you have, you may be eligible for an HSA. If you’re eligible for an HSA, your employer may set one up through your insurance company. Otherwise, you can set up an HSA account at most banks or credit unions.
What kind of insurance plan do I need to have? To qualify for an HSA, you need to be enrolled in a High Deductible Health Plan (HDHP). Like the name sounds, this means you have a higher deductible to pay for medical expenses. That’s where the HSA becomes helpful. Using pre-tax dollars, you can save money for paying medical expenses.
You can’t have an HSA of your own if you’re a dependent on someone else’s tax return.
As a participant of an HDHP, you can receive discounted or even free preventive care services. Preventive care includes:
- Annual physicals and checkups
- Prenatal and well-child care
- Immunizations for adults and children
- Stop-smoking programs
- Approved weight-loss programs
- Screening services for:
- Heart disease
- Musculoskeletal disorders
- Pediatric conditions
- Vision and hearing disorders
Can I have another insurance plan? Typically not, and that includes Medicare Part A or Part B. But there are some exemptions: you can have standalone dental and vision plans, long-term care plans, disability insurance, and worker’s comp insurance.
How big does the deductible have to be? To qualify for an HSA for 2019, the HDHP deductible must be at least $1,350 for an individual, or at least $2,700 for families.
To qualify for an HSA for 2020, the HDHP deductible must be at least $1,400 for an individual, or at least $2,800 for families.