Who is eligible for an HSA?
You must participate in a High Deductible Health Plan, have no other insurance coverage other than those specifically allowed, and not be claimed as a dependent on someone elses tax return in order to be eligible for an HSA. Some examples of other coverage that would cause ineligibility are: a flexible spending account * (FSA), a spouses FSA, a spouses HMO, other non-high deductible health insurance coverage, TRICARE, Medicare, or receipt of VA benefits within the previous three months. You can still have other disability, dental, vision and long-term care insurance policies. * Limited FSA uses are allowed.
To be eligible for an HSA, you must be covered by a high deductible health plan and you must not be covered by other health insurance. (This restriction does not apply to insurance for specified illness or disease or accident, disability, dental care, vision care, long-term care or hospitalization insurance) In addition, you cannot be enrolled in Medicare nor can you be claimed as a dependent on someone else`s tax return. You are also ineligible for an HSA if, while covered under a high deductible health plan, you are also covered (whether as an individual, spouse, or dependent) under a health plan that is not a high deductible health plan.
To participate, you must be enrolled in an HSA qualified health plan, and cannot be covered by any other plan that is not an HSA qualified health plan, with certain exceptions. Additionally, you cannot be enrolled in Medicare, be a dependent on someone else’s tax return, or have received VA medical benefits in the past three months. If you have questions about your eligibility, please consult your tax advisor.
An “eligible individual” may establish an HSA. An “eligible individual” means an individual who (i) is covered under a high deductible health plan as of the first day of the month, (ii) is not also covered by any other health plan that is not a high deductible health plan (with certain exceptions for certain types of permitted coverage, as discussed more fully below), (iii) is not enrolled in Medicare, and (iv) may not be claimed as a dependent on another person’s tax return.
