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Can an HSA Account Be Used for Any Family Member?

Health savings accounts are becoming popular as more people turn to high-deductible health plans for their health care coverage. The theory behind a high-deductible health plan is that you can save money on your insurance premium by choosing a higher deductible, and deposit the savings into an account. You then use that account to pay health care expenses that do not meet your deductible. The idea is to give you, the user, an incentive to spend your health care dollar wisely.

  1. Family Members

    • An HSA can be used to pay for qualified medical expenses. These are expenses incurred by you and your spouse who is covered by the plan. Qualified expenses also include health care-related expenses for any of your dependents. They also include health care expenses incurred by anyone who could be considered your dependent except for some specific reason. If the person in question was not a dependent because he filed a joint return or had income greater than $3,650 as of 2010, his medical expenses are qualified. Also, if you or your spouse file a joint return but could be claimed as a dependent on someone else's return, your expenses are still qualified under an HSA.

    Children in A Divorce

    • The rules are slightly different if you and the parent of your child are divorced. If you are divorced or separated from your spouse who is the parent of the child, health care expenses that you pay for the child out of your HSA are qualified, even if you have released the child to be claimed as a dependent on your spouse's return. The child is considered for HSA purposes a dependent of both parents. This also applies if you and your spouse lived apart for the last six months of the year.

    Qualified Expenses

    • You may pay for qualified medical expenses with a health savings account. This includes medical and dental expenses. You may also pay for over-the-counter medicines with an HSA, even though they are no longer eligible for a Flexible Spending Account.

    Qualifying for an HSA

    • You must be covered by a high-deductible health plan to be eligible to contribute to an HSA. A high-deductible plan has a deductible of at least $2,000 for an individual and $4,000 for a family. The deductible cannot be higher than $3,000 per person or $6,050 per family. You or your spouse must not have any other type of health care plan that is not considered a high-deductible plan.

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