Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Health InsuranceMedium
A Florida family is evaluating health insurance options. They are interested in a plan that allows them to use a health savings account (HSA). Which of the following plan characteristics is a mandatory requirement for an individual to be eligible to contribute to an HSA?
- AEnrollment in Medicare Part A and Part B.
- BPossession of other health insurance coverage.
- CCoverage under a High Deductible Health Plan (HDHP).
- DEnrollment in any PPO plan.
Show answer & explanationAnswer & explanation
Correct answer: C. Coverage under a High Deductible Health Plan (HDHP).
To be eligible to contribute to an HSA, an individual must be covered under a High Deductible Health Plan (HDHP) and not have other disqualifying health coverage.
Why the other options are wrong
- A. Enrollment in Medicare disqualifies an individual from contributing to an HSA.
- B. Having other health insurance coverage (with some exceptions) can disqualify an individual from contributing to an HSA.
- D. PPO plans are not universally HDHPs, so this is not a mandatory requirement.
HSA Eligibility Requirements
To be eligible to contribute to a Health Savings Account (HSA), an individual must be covered by a High Deductible Health Plan (HDHP) and meet specific criteria.
- Must be covered by an HDHP.
- Must not be covered by any other non-HDHP health insurance (with exceptions).
- Must not be enrolled in Medicare.
- Cannot be claimed as a dependent on someone else's tax return.
Memory trick: High Deductible is the key to HSA, no Medicare or other plans, okay?