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Can I Have a Health Savings Account & Regular Medical Insurance?

A health savings account provides a number of important benefits, including tax savings and a way to accumulate funds you can tap in case of a serious medical problem, accident or illness. But to be able to open an HSA, you must first participate in a health insurance plan that is eligible for such an account.

  1. High Deductibles

    • Before you can open a health savings account, you must first have a high-deductible health plan, known in the industry as an HDHP, in place. If you shop for health insurance on the individual market, you should specify to your broker that you need an HDHP plan. Many employers also offer HDHP options to their employees, so you may be able to get an HSA-eligible plan through work as well.

    Minimum Deductible

    • To qualify for a health savings account, the health insurance plan you choose must meet the minimum deductible levels established by the IRS. These deductible requirements are subject to change, and it is always a good idea to review them before choosing a new health plan or opening a new HSA. For 2011, your health insurance plan must have a minimum deductible of $1,200 for individual coverage or $2,400 for family coverage to qualify for a health savings account.

    Contribution Limits

    • For 2011, you can contribute up to $3,050 to a health savings account if that account only covers your own expenses. If you have a health savings account that covers your entire family, you can contribute up to $6,150. If you are at least 55 years of age, you can contribute an extra $1,000 to either an individual or family plan HSA.

    Changing Rules

    • The rules governing health savings accounts are subject to change, and it is important for anyone who owns an HSA to keep up with those changes. If you get your health insurance through your employer, you should check with your benefits manager during each open enrollment period to make sure the plan you choose still qualifies for an HSA. If you buy your own individual coverage, you should check the HSA eligibility of each plan with your insurance broker.

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