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definition of HSA compatible plan
Old 10-02-2013, 08:39 PM   #1
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definition of HSA compatible plan

I was browsing some of the exchange plans, and noticed that some health insurance plans are listed as HSA plans while others with higher deductibles aren't shown as HSA plans.

Example:

Silver HSA Plan
Deductibles $2500/$5000
OOP Maximum $5000/$10000

Silver Non-HSA Plan
Deductibles $3000/$6000
OOP Maximum $6000/$12000

What other plan features come into play in determining whether a health insurance plan is HSA compatible?
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Old 10-02-2013, 08:54 PM   #2
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Well, HSA-compatible plans also have a limit on how *high* the OOP maximums can be, but for 2014 those are (for individual and family) $6,350 and $12,700 -- so there must be something else in the details of the policy that don't conform to the requirements of an HSA-compatible plan.
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Old 10-02-2013, 09:16 PM   #3
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Originally Posted by ziggy29 View Post
so there must be something else in the details of the policy that don't conform to the requirements of an HSA-compatible plan.
Exactly. I was curious what those other requirements are. I didn't see it in a few pages of google results, but I went onto the IRS website and in IRS Pub 969 I found this, which may be what's happening.

There are some family plans that have deductibles for both the family as a whole and for individual family members. Under these plans, if you meet the individual deductible for one family member, you do not have to meet the higher annual deductible amount for the family. If either the deductible for the family as a whole or the deductible for an individual family member is below the minimum annual deductible for family coverage, the plan does not qualify as an HDHP

It sounds like non-HSA plans may be preferable if multiple family members are making claims - despite the favorable tax treatment of HSAs.

EDIT: here is a link that seems to describe the full set of requirements for a health insurance plan to be HSA compatible:

http://www.ibx.com/broker_group/prod...uidelines.html
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Old 10-03-2013, 12:01 AM   #4
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When considering an HSA plan don't forget to factor in that your HSA account contribution reduces your MAGI under the ACA and, therefore, may increase your subsidy or qualify you for one.
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Old 10-03-2013, 06:34 AM   #5
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I believe that an HSA also requires "earned income." I don't think you can contribute without that. I tried poking around in the IRS regs and couldn't find it. For most people, this isn't an issue but if all your income is passive it could be a problem.
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Old 10-03-2013, 06:51 AM   #6
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There are no earned income requirements for HSA eligibility. It is an above the line adjustment to income and works with any combination of earned and passive.
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Old 10-03-2013, 07:09 AM   #7
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There are no earned income requirements for HSA eligibility. It is an above the line adjustment to income and works with any combination of earned and passive.
Thanks for the correction. As a misguided wage slave, I somehow imagined it has some "benefits."
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Old 10-03-2013, 10:38 AM   #8
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Thanks for the correction. As a misguided wage slave, I somehow imagined it has some "benefits."
You can contribute to an IRA. Those not enslaved by wages cannot.
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