Merritt Personal Lines Manual: Who's Eligible?
Before he or she can enroll in an HSA, an insured must meet the eligibility requirements.
For example, you are eligible for an HSA if you:
- Are covered under an HSA-qualified HDHP on the first of any month in which contributions are made to the HSA. To be considered HSA-qualified, the HDHP must satisfy certain requirements. For example, in 2006 an HDHP must have a $1,050 minimum annual deductible with an annual $5,250 maximum out-of-pocket expense for individual coverage, or a $2,100 minimum annual deductible with a $10,500 annual maximum out-of-pocket expense for family coverage.
- Are not covered by other basic health plan that is not a qualified high-deductible health plan - including coverage under a spouse's health plan. However, you may have supplemental or other types of insurance and still qualify for an HSA, such as accident, disability, dental, vision, long-term care, hospital income, and specified disease coverage.
- Are not entitled to benefits under Medicare.
- Cannot be claimed as a dependent listed on someone else's tax return.
HSA qualified high-deductible health insurance plans usually have lower premiums than traditional plans and the money an insured saves on premiums can be used to help fund the HSA. Families can often save thousands of dollars in annual reduced premiums by switching to an HSA qualified health plan.
There has been negative information circulated about HSAs the primary criticism being that they drain money from the sick and help only "healthy, wealthy" Americans. But no empirical evidence exists to support this charge. Instead, marketing research indicates that a large number of Americans, not just the "healthy, wealthy," would likely switch to HSAs, if they had the option. One survey conducted by Blue Cross/Blue Shield found that 43 percent of employees would "definitely or probably" switch to HSAs if they were available.
Perhaps the most important aspect of HSAs is that they encourage individuals to think like consumers about the health care services they use. This is something traditional health insurance in the U.S. has discouraged for several generations.
