Eligibility

To open a Health Savings Account (HSA), an individual must be covered by a High Deductible Health Plan (HDHP).  An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into your HSA.

Sometimes referred to as “catastrophic” health insurance, an HDHP generally does not pay for “first dollar” coverage, i.e. medical expenses up to the annual deductible.  The HDHP will, however, cover you — often at a more comprehensive level than traditional HMO/PPO plans — once you have met that deductible.  Your HSA is available to help you pay for these “first dollar” or “out-of-pocket” expenses, as well as any charges not covered by your particular plan.

The minimum deductible and maximum out-of-pocket for 2009 are shown below:

Your eligibility for an HSA is also determined by your other health insurance coverage.  For example, if you are covered under a medical insurance policy other than an HDHP, you may not qualify for an HSA.  Coverage under Medicare, a general purpose Flexible Spending Account (FSA) or Health Reimbursement Account (HRA), or coverage under another person’s policy that is not an HDHP could make you ineligible for an HSA.  For questions concerning your individual status, contact your benefits manager or tax advisor.

If you have a qualified high deductible insurance plan, we invite you to open your HSA account with us today by visiting the Open an HSA Now page.