• Q. I prefer to speak to someone directly and would like more information sent to my home. 
  A.  Some people prefer not to apply online.  That is normal.  A professional agent is available 24 hours a day 7 days a week to answer all your questions and concerns.  An information packet can also be sent to your home.  Fill out information request form and someone will return your call within 24 hours.

• Q. I don’t have health insurance, can I get an HSA? 
  A.  You cannot establish and contribute to an HSA unless you have coverage under a H.S.A. –Eligible Insurance plan

• Q. Who is eligible for a Health Savings Account? 
  A. To be eligible for a Health Savings Account, an individual must be covered by a HSA-qualified High Deductible Health Plan, and must not be covered by other health insurance that is not an H.S.A. Eligible plan.  Certain types of insurance are not considered “health insurance”.

• Q. Can I get an HSA even if I have other insurance that pays medical bills? 
  A. You are only allowed to have auto, dental, vision, disability and long-term care insurance at the same time as an HDHP.  You may also have coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered. Wellness programs offered by your employer are also permitted if they do not pay significant medical benefits.

• Q. My employer offers an HRA, can I have both an HRA and an HSA? 
  A. You can have both types of accounts, but only under certain circumstances.  General Health Reimbursement Arrangements (HRAs) will probably make you ineligible for an HSA.  If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (

• pay for medical expenses after the plan deductible is met) HRA, then you can still be eligible for an HSA.  If your employer contributes to an HRA that can only be used when you retire, you can still be eligible for an HSA.

• Q. My spouse has an FSA or HRA through their employer, can I have HSA?  
  A. You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

• Q. I make $500,000. a year income, can I have an HSA?  
  A. There are no income limits that affect HSA eligibility.  However, if you do not file a federal income tax return, you may not receive all the tax benefits HSAs offer.

• Q. Can I start an HSA for my child? 
  A. No, you cannot establish separate accounts for your dependent children, including children who can legally be claimed as a dependent on your tax return.

• Q. Who has ownership of a Health Savings Account?  
  A. An HSA is owned solely by the individual in whose name the account is listed.

• Q. Who is eligible to own an HSA?  
  A. HSAs can be owned by an individual or family covered by a qualified HDHP.

• Q. Can a small group employer own an HSA?  
  A  small group employer can set up health savings accounts for individual employees who have qualified HDHP coverage However, it is the individual employee who owns their HSA.

• Q. Are HSAs portable? 
  A. An individual owns the HSA. If an employee leaves an employer and wants to roll the HSA money over into another financial institution, the rollover must be completed within 60 days. (e.g., if the money is withdrawn from the HSA account, there are 60 days to get it back into a qualified (HSA) account to avoid paying taxes and penalties on the withdrawal.)

• Q. Will the HSA account pay for preventive care?  
  A. Preventive care is not subject to the deductible, though a plan may offer first dollar coverage for preventive care and still qualify for an HSA.

• Q. Will the HSA pay for office visits?  
  A. Co-payments for office visits are not permitted unless they occur after the deductible. Office visit co-pays are applied toward the out of pocket maximum.

• Q. Will the HSA pay for prescription drugs? 
  A. Co-payments are not permitted unless they occur after the deductible.  
  Co-insurance amounts paid are applied toward the out of pocket maximum.

• Q. What happens to an HSA upon account owner death? 
  A. Upon death, any balance remaining in the HSA becomes the property of the person named as the beneficiary of the account.

• If the beneficiary is the spouse, the HSA becomes the property of the spouse. The spouse is subject to income tax only if distributions are not used for qualified medical expenses.

• If, at death, the HSA transfers to anyone other than a spouse, the HSA ceases to be an HSA as of the date of the accountholder’s death, and the fair market value of the HSA is included in the beneficiary’s gross income.

• For anyone other than the estate, the includable amount is reduced by any payments made for the decedent’s qualified medical expenses if paid within one year of death.

• Taxable distributions made after the account beneficiary’s death, disability or attainment of age 65 are not subject to the additional excise tax

• Q. How are employer contributions taxed?  
  A. Employer contributions to an employee’s HSA are excludable from the employee’s gross income, and are not taxable to the individual.  
   
  Contributions to an employee’s HSA through a cafeteria plan are treated as employer contributions.

• A. Employer contributions are not subject to withholding from wages for income tax, FICA (Social Security) or FUTA (Federal Unemployment Tax)

• Employer and salary reduction contributions are exempt from FICA and FUTA.

• A. Self-Employed: Contributions 100% tax-deductible 
  S-Corp Owners: Contributions 100% tax-deductible 
  Business Partners: Contributions 100% tax-deductible

• Q. Hello. I would like to open a HSA account. May I have money directly deposited into it each month, or should I do a lump sum???? 

• A.  You or anyone else making a contribution to your account can do either.

• Q. What is a Health Savings Account?

• A. Health Savings Accounts are a new option for health insurance and they have two parts. The first part is a health insurance policy that covers large hospital bills. The second part of the Health Savings Account is an investment account or retirement account from which you can withdraw money tax-free for medical care. Otherwise, the money accumulates with tax-free interest until retirement, when you can withdraw for any purpose and pay normal income taxes.

• Q. I carry a private $2K deductible health ins. policy. Can I combine that with just the investment/savings part of an HSA? Can my ins. premiums be paid through the HSA?

• A. Your insurer is the best one to answer that question, but assuming your health plan qualifies (and the deductible does qualify) then yes, you can just combine it with an HSA you open somewhere else. The only time you can pay your premium out of your HSA is when you are unemployed and are collecting unemployment.

• Q. What accountability is required for how the money in the HSA is spent. i.e. If I spend $1200 on prescriptions using my American Express card can I then reimburse myself from the HSA? Is the administrator responsible to ensure all expenses are valid?

• A. The administrator is not responsible for what someone with an HSA spends the funds on, the HSA holder is the one responsible. Yes, you can re-imburse yourself. You are the one responsible for whether your HSA expenditure is allowable or non-allowable. For an extensive list of allowable and non-allowable expenditures, see Tables D and E in HSA Road Rules, which can be downloaded from our homepage or from the Q & A section of this site

Please don't hesitate to contact us if you have further questions or if you are unsure about any Health Savings Account question.