United States: Alliant: Disqualifying Coverage for Health Savings Account Purposes

In the United States, a Health Savings Account (HSA) is savings account available to taxpayers who are enrolled in a high-deductible health plan (HDHP). A common question is whether coverage is disqualifying for the purposes of HSA eligibility. In the case of a traditional lower deductible medical plan, the answer is that coverage would indeed be disqualifying.

Sometimes, however, there are other coverage options that could affect HSA eligibility. Asinta’s US Partner, Alliant has some handy information on this subject. For example:-

Coverage on a spouse’s general purpose Flexible Spending Account/Health Reimbursement Arrangement (most FSAs/HRAs are designed to allow this); this is almost always disqualifying coverage.
Coverage through an employer’s onsite clinic (not disqualifying if the coverage is for preventive care or if it provides “insignificant” medical care).
Coverage through the Department of Veteran Affairs (VA) (starting in January 2016, coverage for a service-connected disability will not adversely affect HSA eligibility regardless of when the services were rendered; prior to 2016, VA coverage is disqualifying if services have been received in the previous 3 months).
Coverage through Indian Health Service (IHS) (disqualifying if services have been received in the previous 3 months).
Coverage through TRICARE (disqualifying).
Coverage through Medicaid (disqualifying).
Coverage through Medicare (disqualifying).

To know more, please contact Alliant Employee Benefits.