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Who Is Eligible?
Health Savings Accounts serve as an
alternative to traditional health insurance policies. Acting as a type
of savings account, Health Savings Accounts offer individuals a
different way to pay for their health care needs. Essentially, Health
Savings Accounts allow policyholders to pay for current medical expenses
and save for their future health care needs. Not unlike many insurance
policies there are restrictions on who can participate and who is
eligible for coverage. Health Savings Accounts have few restrictions,
but restrictions none the less.
First and foremost, in order to
qualify for a Health Savings Account you must be enrolled in a high
deductible policy. A high deductible health plan is an insurance policy
that generally doesn’t pay for the first several thousand dollars of
health care expenses. This is where your Health Savings Account is
designed to kick in. When participating in a high deductible health plan
you must not be covered by another health insurance policy that is not a
high deductible health plan. You are however allowed to retain dental,
vision, auto, disability, and long term care coverage while
participating in a high deductible health plan.
In order to qualify for a Health
Savings Account you cannot currently be enrolled in Medicare. If you had
a Health Savings Account prior to enrolling in Medicare you can keep the
account. However, you are not allowed to contribute to your Health
Savings Account after enrolling in Medicare.
While many can qualify for Health
Savings Accounts there are a few more restrictions placed on those who
are able to enroll. If you have received health benefits from the
Veterans Administration or any counterpart in the last three months, you
are not eligible for a Health Savings Account. If you spouse has an FSA
or HRA and you can receive medical coverage, you will not qualify for a
Health Savings Account.
Listed above are
the key factors in ones ineligibility to obtain a Health Savings
Account. For more detailed information you can visit the US Treasury
Health Savings Account website.
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