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Enrolling in an HSA

If you participate in a qualifying high-deductible health plan, you can enroll in an HSA--as part of an employer group or as an individual.

Why Enroll?

It’s best to set up and begin funding your HSA early in your plan year – even if you don’t intend to use it right away. That’s because medical expenses incurred before your HSA is active are not eligible to be reimbursed.

Your account is not considered active until a contribution has been made.

Setting up and using an HSA makes a lot of sense. It’s an easy and convenient way to pay for your eligible medical expenses, enjoy tax savings and earn tax-free interest on your account balance, too.

Qualifying Health Plans

To be eligible to open an HSA, you need to be enrolled in a high-deductible health plan (HDHP) that meets IRS guidelines for annual deductibles and out-of-pocket maximum as outlined below. 

2019 Requirements

  Single Family

Minimum annual deductible

An individual (embedded deductible) on a family policy cannot be less than the minimum family deducible amount listed established by law

$1,350 $2,700

Out-of-pocket maximum

The maximum for the health plan cannot exceed these amounts

$6,750 $13,500

 

2020 Requirements

  Single Family

Minimum annual deductible

An individual (embedded deductible) on a family policy cannot be less than the minimum family deducible amount listed established by law

$1,400 $2,800

Out-of-pocket maximum

The maximum for the health plan cannot exceed these amounts

$6,900 $13,800



All services must apply toward the deductible (including prescription drugs), with the exception of preventative care services.

Additional requirements:

  • You cannot be claimed as a tax dependent by someone else
  • You cannot be enrolled in Medicare or Tricare.
  • You cannot be covered under a health plan (as an individual, spouse, or dependent) that is not an HDHP
  • If you are also covered by a medical flexible spending account (FSA), it must be a limited FSA, covering only vision and dental expenses.
    This applies even if the FSA is in your spouse's name.
  • If you are also covered by a health reimbursement arrangement (HRA), it must be a limited HRA, covering only vision and dental expenses.
    This applies even if the HRA is in your spouse's name.

Other Benefit Plans

You may enroll in the following types of plans while maintaining your HSA eligibility:

  • Accident coverage
  • Disability coverage
  • Dental and vision care
  • Long-term care insurance
  • Insurance for a specified disease or illness
  • Insurance that pays a fixed amount per day (or other period) of hospitalization
  • Insurance in which the coverage relates to liabilities from workers’ compensation laws, torts or ownership or use of property (such as automobile insurance)
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