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Health Savings Accounts

Who Can Establish an HSA?

These plans are available only to individuals with a qualified high-deductible health plan (HDHP). In 2019, a HDHP is a plan with a deductible of at least $1,350 (same as in 2018) for individual coverage and $2,700 (same as in 2018) for family coverage. In addition, in 2019 the annual out-of-pocket expense (e.g., co-pays, deductibles, and other amounts, other than premiums) can be no more than $6,750 ($6,650 in 2018) for individual coverage and $13,500 ($13,300 in 2018) for family coverage. These amounts are indexed annually for inflation. To qualify as an HDHP, no payment can be made from a family coverage plan for an individual (except for preventative care benefits to which a deductible does not need to apply) until the family deductible is met.

You generally will not be eligible to open an HSA, even if you are covered under an HDHP, if any of the following apply:

  • You are already covered under a non-HDHP, including a comprehensive major medical plan, a plan sponsored by your employer or your spouse's employer, or a prescription drug plan with a low deductible or no deductible. However, depending on the type of non-HDHP coverage you have, you still may be eligible to establish an HSA. For example, if you are covered by a non-HDHP that provides insurance for a specific disease or illness, you may still be eligible for an HSA.
  • You can be claimed as a dependent on another person's income tax return.
  • You are entitled to Medicare coverage (i.e., you are age 65 or older), and have enrolled in Medicare.
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