What other kinds of health coverage may an individual maintain without losing eligibility for a HSA?
An individual may have “permitted insurance.” Permitted insurance is insurance under which substantially all of the coverage provided relates to liabilities incurred under workers’ compensation laws, tort liabilities, liabilities relating to ownership or use of property (e.g., automobile insurance), insurance for a specified disease or illness, and insurance that pays a fixed amount per day (or other period) of hospitalization. In addition to permitted insurance, an individual may have coverage for accidents, disability, dental care, vision care, or long-term care. If a plan that is intended to be a HDHP is one in which substantially all of the coverage of the plan is through permitted insurance or other coverage as described in this answer, it is not a HDHP.
