Do I qualify to open an Health Savings Account?

[Machine99]

I'm enrolled in a Bronze Plan with my company.
Deductible $3000/$6000 (individual/family)
Max out of pocket $6,000/$12000 (individual/family)

I see that for 2019 the definition of a high deductible plan is:
Minimum deductible $1,350/$2,700 (individual/family)
Maximum out of pocket $6,750/$13,500 (individual/family)

I'm assuming I need to be above the $1,350/$2,700 (individual/family) minimum deductible? I'm also assuming I need to be above the Max out of pocket as well? So I do not qualify?

 

[MichaelB]

In addition to the deductible limits, the policy must also require you to meet all expenses until the deductible is met, with the exception of certain preventive care.



Many HSA eligible policies use "HSA" in the name. Is that the case here?

 

[gauss]

I'm enrolled in a Bronze Plan with my company.
Deductible $3000/$6000 (individual/family)
Max out of pocket $6,000/$12000 (individual/family)

I see that for 2019 the definition of a high deductible plan is:
Minimum deductible $1,350/$2,700 (individual/family)
Maximum out of pocket $6,750/$13,500 (individual/family)

I'm assuming I need to be above the $1,350/$2,700 (individual/family) minimum deductible? I'm also assuming I need to be above the Max out of pocket as well? So I do not qualify?

If I am not mistaken, you have this backwards. You need to be below the out-of-pocket-maximum limit, not above.

-gauss

 

[Rianne]

Yes, must say HSA in the name. I was looking at a bronze policy last year and the deductibles were high, @ $6K for each of us. It was not an HSA approved policy. I called our health equity company and asked, they gave me incorrect information. Told me, yes, the policy was qualified at that level of deductibles. I felt unsatisfied and called our insurance broker. She said it was NOT a qualified plan.

 

[Machine99]

In addition to the deductible limits, the policy must also require you to meet all expenses until the deductible is met, with the exception of certain preventive care.



Many HSA eligible policies use "HSA" in the name. Is that the case here?

It does not have HSA in the name. Should I call United Healthcare and just ask them?

 

[Rianne]

It does not have HSA in the name. Should I call United Healthcare and just ask them?

Absolutely worth the call.

 

[Aerides]

For sure call them, or you can probably see your plan details on healthcare.gov? The description usually makes it clear. If you aren't eligible for this year, be sure to look for that qualifier when re-upping for 2020.

 

[Bir48die]

Yes, must say HSA in the name. I was looking at a bronze policy last year and the deductibles were high, @ $6K for each of us. It was not an HSA approved policy. I called our health equity company and asked, they gave me incorrect information. Told me, yes, the policy was qualified at that level of deductibles. I felt unsatisfied and called our insurance broker. She said it was NOT a qualified plan.

Sorry but this is incorrect. You just have to meet the deductible criteria. Mine doesn't say HSA on it and I qualify for HSA.

 

[Machine99]

Well I called United Healthcare. Lady I spoke with had no clue what I was talking about and told me to call my company's benefits department. I call them and they were clueless as well.....

 

[MichaelB]

Well I called United Healthcare. Lady I spoke with had no clue what I was talking about and told me to call my company's benefits department. I call them and they were clueless as well.....

Does the policy pay for any non-preventive health care before you've fully met the deductible? These would be expenses like a specialist visit, some lab work, etc. Something other than preventive care. Also, does it have any co-pay?

 

[REWahoo]

Machine99, this website may help: Health Savings Account FAQ - HSA Qualifying Plans

 

[Machine99]

Does the policy pay for any non-preventive health care before you've fully met the deductible? These would be expenses like a specialist visit, some lab work, etc. Something other than preventive care. Also, does it have any co-pay?

BRONZE PLUS PLAN
	In Network
Calendar Year Deductible Individual/Family	$3,000 / $6,000
Medical Annual Outof-Pocket Maximum Individual/Family	$6,000 / $12,000
Coinsurance	60%
Annual checkups/physicals,mammograms, etc.	100%
Phone or OnlineConsultation —provided by Teladoc	100%
Primary CarePhysician (PCP)Office Visit	60% coinsurance,after deductible
Specialist Office Visit	60% coinsurance,after deductible
Surgery (Inpatient or Outpatient Hospital)	60% coinsurance,after deductible
Hospital Care	60% coinsurance,after deductible
Emergency Room	60% coinsurance,after deductible
Urgent Care Clinic	60% coinsurance,after deductible

 

[Machine99]

I called Fidelity and they say I quality. So I guess I'm going to go ahead and open an account.

 

[fh2000]

I called Fidelity and they say I quality. So I guess I'm going to go ahead and open an account.

I hope you are correct so you can contribute the amount.

My old employer provided plan has HDHP as part of the name, and online sign up form indicates amount of payroll deduction each pay period, so I know it is HSA eligible.

Now we are using ACA. My ACA Bronze plan also has HDHP as part of the name. In plan summary, there is a table with an entry: Health Savings Account (HSA) eligible = Yes.

I would try to call the Insurance company again to make sure it is. If the line agent is not sure, ask to speak to the supervisor. HSA eligible plans will send 1099-SA for tax purpose. So, that might be another clue.

 

[REWahoo]

My old employer provided plan has HDHP as part of the name, and online sign up form indicates amount of payroll deduction each pay period, so I know it is HSA eligible.

Now we are using ACA. My ACA Bronze plan also has HDHP as part of the name. In plan summary, there is a table with an entry: Health Savings Account (HSA) eligible = Yes.

I would try to call the Insurance company again to make sure it is. If the line agent is not sure, ask to speak to the supervisor. HSA eligible plans will send 1099-SA for tax purpose. So, that might be another clue.

+1

My experience says if a plan is HSA eligible it will say so in the name of the policy.

From the website I linked above:

The health insurance company or plan administrator will provide a written statement verifying this [HSA] status. The words "qualifying high-deductible health plan" or a reference to IRC Section 223 will be included in the declaration page of the policy or in another official communication from the insurance company. If this documentation is not provided or available, it is NOT a qualifying plan.

 

[Machine99]

Thanks all,

Just chatted online with United Healthcare and they confirmed my bronze plan is considered High Deductible and I qualify to open an HSA.

 

[gauss]

I hope you are correct so you can contribute the amount.

...
I would try to call the Insurance company again to make sure it is. If the line agent is not sure, ask to speak to the supervisor. HSA eligible plans will send 1099-SA for tax purpose. So, that might be another clue.

Actually this is not quite the case.

It is the HSA administrator (ie bank, fidelity, etc.) where the money is invested that sends the 1099-SA, not the health insurance plan.
When I openend my most recent HSA account at Fidelity, all I needed to do was certify that I was elgible to have and/or to make contributions to an HSA. There was no third party verification.

If you really want to make sure that you are clean on this, read the requirements for a HI plan to qualify as HDHP in the IRS documentation.

Publication 968
Form 8869 Instructions

-gauss

 

[Rianne]

Sorry but this is incorrect. You just have to meet the deductible criteria. Mine doesn't say HSA on it and I qualify for HSA.

Correction: It said HDHP. The other plan was not HDHP/HSA approved.

 

[jebmke]

When I was on an HDHP retiree plan through my former employer, the annual renewal confirmation stated that the plan qualified for an HSA. I needed this statement two years in a row when my Form 8889 was audited by the IRS.