Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Keeping Health Saving Accounts and other Health Insurance topics.
To qualify for a health savings account, or HSA, you must have a high deductible health plan (HDHP) with a deductible of at least $1,000 for singles and at least $2,000 for families. The annual out-of-pocket maximum expenses on the plan cannot be more than $5,250 for individuals or $10,500 for families. You can purchase your HDHP coverage through your employer or, if you are unemployed or self-employed, directly from a broker that handles HDHPs. If you are covered by another health insurance plan that is not an HDHP, you are not eligible for an HSA. Other types of insurance that you may have and that will not affect your HSA eligibility include auto, dental, vision, disability, long-term care insurance, coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered, and wellness programs offered by your employer as long as they do not pay significant medical benefits. Medicare recipients are not eligible for HSAs. Individuals who can be claimed as a dependent on another's income tax return are also ineligible for an HSA.