Who is qualified to participate in an HSA?
• Only people covered by a high-deductible health plan (HDHP) can participate in an HSA. • Those who are eligible for Medicare cannot actively participate in an HSA, although HSA funds that have accrued prior to that time may be used to pay for qualified medical expenses without being taxed. • An individual who may be claimed as someone else’s dependent cannot participate in an HSA. • Generally, a person with an HSA cannot be covered under any other health plan. However, the legislation provides exemptions for certain types of “permitted” (generally limited) health coverage such as that provided under state workers’ compensations laws, property insurance, insurance for a specified illness, and hospital indemnity insurance. A health reimbursement arrangement (HRA) or flexible spending account (FSA) limited to these types of benefits may still be offered alongside an HSA. In many cases, members would like use the FSA for dental. • If you have enrolled in the MHBP Consumer Option and you
