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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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I was told to ask a tax adviser about a Health Savings Account.

This answer was rated:

I was told to ask a tax adviser about a Health Savings Account. My husband carries Health insurance on our kids. I carry Health insurance on myself through my employer. I currently have a Flex Spending account through my employer (in which I can use toward the kid's medical expenses), however they are lowering the cap on it next year. I am looking into opening a Health Savings Account through our Credit Union. However my question is am I eligable to open the Family plan even though I do not carry the insurance on the kids (to cover their copays for doctor's appointments, and medicines).

Megan C :

Hello, and welcome to JustAnswer.com

Megan C :

In order to be eligible to open a HSA, certain criteria must be met.

Megan C :

First, you have to have a High Deductible Health Plan

Customer:

Ok how do I know if we have high deductables

Megan C :

Is your deductible at least 1,200 for individual or 2,400 for family?

Customer:

not sure will check a minute

Megan C :

Okay I will give you a moment.

Megan C :

The requirements are as follows: To be eligible to open an HSA, an individual must meet the following requirements:



  • Have an HSA-qualified health plan.

    • Minimum required deductibles:

      • $1,200 for individual coverage in 2012—$1250 in 2013

      • $2,400 for family coverage in 2012—$2500 in 2013



    • Maximum out-of-pocket limits:

      • $5,950 for individual coverage in 2012—$6250 in 2013

      • $11,900 for family coverage in 2012—$12,500 in 2013





  • Have no other health coverage except what is permitted as other health coverage (see #1 below).

  • Not be enrolled in Medicare.

  • Not be claimed as a dependent on someone else's tax return.

Megan C :

But, you can't open up an HSA if a spouses' Flexible Spending Account can be used to pay any medical expenses before deductibles are met

Customer:

For my insurance my deductible is 1000.00 in network. Maximum out of pocket is 1500.00

Megan C :

You don't qualify for a HSA

Megan C :

:-( Sorry

Megan C :

I wish I had better news for you

Customer:

The kid's deductible is 450.00 max out of pocket is 1800.00 in network.

Megan C :

Yes, your plan must have a minimum deductible of $1,200 - so you do not qualify for a HSA account

Megan C :

You will be limited to using the Flex Spending account

Customer:

ok thank you for your advice

Megan C :

You're welcome. Is there anything else I can assist you with today? If not, please rate my response as "excellent" so that I may receive credit for assisting you today

Megan C and 2 other Finance Specialists are ready to help you
Michelle,

I see that you stepped out of our chat. I hope that we were able to assist you with your inquiry today. If you would, please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today.

You can CLICK HERE to read about HSA eligibility requirements.

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