Who's Eligible to Open an HSA?*

To be eligible to open an HSA, an individual must meet the following requirements:

• Have a qualified high-deductible health plan (HDHP).
  • Minimum required deductibles for 2010 and 2011:
    • $1,200 for self-only coverage
    • $2,400 for family coverage
  • Maximum out-of-pocket limits for 2010 and 2011:
    • $5,950 for self-only coverage
    • $11,900 for family coverage
• Have no other health coverage except what is permitted as other health coverage (see detail 1 below).
• Not be enrolled in Medicare.
• Not be claimed as a dependent on someone else's tax return.

Additional Details

1. To be eligible for a health savings account, an individual must be covered by an HSA-qualified HDHP and must not be covered by other health insurance that is not an HDHP. Certain types of insurance are not considered "health insurance" and will not jeopordize an individual's eligibility for an HSA. Automobile, dental, vision, disability, and long-term care insurance are allowed. Individuals may also have coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered. Wellness programs offered by employers are also permitted if they don't pay significant medical benefits.
2. As long as an individual is covered under an HDHP policy, they can be eligible for an HSA (assuming all other eligibility requirements are met). Individuals may still be eligible for an HSA even if the policy is in a spouse's name.
3. Individuals can't have an HSA if a spouse's flexible spending account (FSA) or health reimbursement arrangement (HRA) can pay for any medical expenses before the HDHP deductible is met.
4. Individuals enrolled in Medicare aren't eligible for an HSA. However, if an individual had an HSA before being enrolled in Medicare, they can keep the account but aren't eligible to make additional contributions.
5. If an individual received any health benefits from the Veterans Administration or one of their facilities, including prescription drugs, in the last three months, they aren't eligible for an HSA.
6. General FSAs may make an individual ineligible for an HSA. If an employer offers a "limited purpose" (limited to dental, vision or preventive care) or "post deductible" (pay for medical expenses after the plan deductible is met) FSA, then an individual is still eligible for an HSA.
7. General HRAs may make an individual ineligible for an HSA. If an employer offers a "limited purpose" (limited to dental, vision or preventive care) or "post-deductible" (pay for medical expenses after the plan deductible is met) HRA, then an individual may still be eligible for an HSA.  If an individual's employer contributes to an HRA that can only be used when the individuals retires, the individual is still eligible for an HSA.
8. An high-deductible non-HDHP (PPO, HMO) will not prevent eligibility if the deductible meets or exceeds the HDHP required minimum.
9. An individual is not eligible for an HSA if their employer pays or reimburses the individual's medical expenses below the minimum HDHP deductible.
10. If an individual has an embedded individual deductible in family HDHP coverage, they are eligible for an HSA if it is not less than the minimum required family HDHP deductible.

*HealthEquity does not provide medical or tax advice. Content should not in any case replace professional medical or tax advice. If you have questions regarding a medical condition, please consult a qualified health care professional. All tax references are on the federal level. State taxes may vary. Please consult your tax adviser.