Posts Tagged ‘insurance’

Who is eligible to open and contribute to an HSA?

Tuesday, August 11th, 2009 by WPJ

To open or contribute to an HSA you must meet certain eligibility requirements. Specifically:

  • You must be covered by a qualified high deductible health plan on the first day of the month
  • You cannot be covered by any other health plan that is not a qualified high deductible health plan, including spouse’s health insurance
  • You cannot be covered by spouse’s Medical FSA
  • You cannot be enrolled in Medicare Part A or Part B
  • You cannot be covered by TriCare
  • To make contributions you cannot have accessed your VA medical benefits in the past 90 days
  • You may not be claimed as dependent on another person’s tax return

Please feel free to contact us if you have any questions about HSAs with Health Savings Administrators.

Does an employer-sponsored health clinic impact contributions to an HSA?

Wednesday, July 2nd, 2008 by WPJ

Is an otherwise eligible individual who has access to free health care or health care at charges below fair market value from a clinic on their employer’s premises eligible to contribute to an HSA?
An individual is not prohibited from contributing to an HSA merely because the individual has access to free health care or health care at charges below fair market value from an employer’s on-site clinic if the clinic does not provide significant benefits in the nature of medical care (in addition to disregarded coverage or
preventive care).

Example 1. A manufacturing plant operates an on-site clinic that provides the following free health care for employees: (1) physicals and immunizations; (2) injecting antigens provided by employees (e.g., performing allergy injections); (3) a variety of aspirin and other nonprescription pain relievers; and (4) treatment for injuries caused by accidents at the plant.
The clinic does not provide significant benefits in the nature of medical care in addition to disregarded coverage or preventive care.

Example 2. A hospital permits its employees to receive care at its facilities for all of their medical needs. For employees without health insurance, the hospital provides medical care at no charge. For employees who have health insurance, the hospital waives all deductibles and co-pays.

Because the hospital provides significant care in the nature of medical services, the hospital’s employees are not eligible to contribute to an HSA. (IRS publication 2008-59)

Can I pay Long Term Care premiums with my HSA?

Wednesday, June 11th, 2008 by WPJ

You may use your HSA for long term care premiums provided your policy meets certain requirements and you stay within the allowable premium expenditure limits.In order to spend money from your HSA on long-term care, your long-term care insurance contract must:

  1. Be guaranteed renewable;
  2. Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed;
  3. Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract, must be used only to reduce future premiums or increase future benefits;
  4. Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses.

For 2012, the amount of premium you can pay with HSA funds are:

  • Age 40 or Under – Up to $340
  • Age 41 to 50 – Up to $640
  • Age 51 to 60 – Up to $1,270
  • Age 61 to 70 – Up to $3,390
  • Age 71 or Over – Up to $4,240