Contact UsCan I use my HSA with any health insurance plan? Does Affordable Care change HSAs in any way?
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Michael Baum, EA
The ACA [Obamacare] no longer allows an HSA to be used to pay for over the counter items [OTC], unless prescribed by a doctor. Only exception is insulin.
You do have to setup a custodial account with a qualified HSA trustee/bank.
www.irs.gov/pub/irs-pdf/p969.pdf
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560 weeks ago
Most insurance companies provide specific HSA plans, however, you do not have to use those. The primary requirement is that you must have a high minimum annual deductible and maximum annual out of pocket.
- Self only coverage limits are $1,250 deductible and $6,250 out of pocket
- Family coverage limits are $2,500 and $12,500 out of pocket
Finally, you cannot be enrolled in Medicare or claimed as a dependent on someone else's tax return in that tax year.
You cannot use the HSA funds to pay your premiums, however, you can use it for just about any other medical type service including dental and vision.
The ACA [Obamacare] no longer allows an HSA to be used to pay for over the counter items [OTC], unless prescribed by a doctor. Only exception is insulin.
You do have to setup a custodial account with a qualified HSA trustee/bank.
The coverage must begin on the 1st day of the month. Also you cannot have any other health coverage except the following:
- Liabilities incurred under workers' compensation laws, tort liabilities, or liabilities related to ownership or use of property.
- A specific disease or illness
- A fixed amount per day (or other period) of hospitalization
- Accidents
- Disability
- Dental Care
- Vision Care
- Long Term Care
www.irs.gov/pub/irs-pdf/p969.pdf