Do I Qualify for a Health Savings Account?
Determine if you meet the eligibility requirements to open a Health Savings Account.
- You must be covered by a High Deductible Health Plan (HDHP)
- You can not be enrolled in Medicare
- You can not be claimed as a dependent on another person's tax return
- You can not be covered by any other health insurance that is not an HDHP
Insurance Coverage Exceptions
The following are exceptions, called "permitted insurance" which an individual can have in addition to the HDHP and still qualify for an HSA:
- Specific disease or illness insurance
- Accident, disability, dental care, vision care and long-term care insurance
- Discount card such as a pharmacy card
- Insurance that provides a fixed payment per day (or other period) for hospitalization
What is a High Deductible Health Plan (HDHP)?
An HDHP is a plan with an annual deductible of at least $1,200 for individual coverage or $2,400 for family coverage with a maximum out-of-pocket expense of $5,950 for individual and $11,900 for family (2010 and 2011 figures). The guidelines for an HDHP are determined by the Internal Revenue Service each year.
Note: A plan will still qualify as an HDHP even though it may not have a deductible (or has only a small deductible) if it is for preventive care.