To be able to take advantage of an HSA, employees must be enrolled in a high-deductible insurance plan. However, just because you're offering a high-deductible plan does not automatically mean it qualifies for an HSA. In fact, only 19 percent of the high deductible insurance plans on the exchange in 2016 were HSA qualified.
The IRS requires that a high-deductible health insurance plan meet the following requirements to be HSA qualified:
- Higher than normal deductible
- Maximum limit on the annual deductible and medical expenses
- No insurance coverage until the deductible has been met, except for Preventative Care and a few other regulatory coverages.
Here are some additional guidelines that your employees will need to meet in order for their high-deductible health plans to be HSA qualified:
- Must not have any other health insurance coverage in place
- Must not be enrolled in Medicare
- Must not be claimed as a dependent on someone else's tax return
If you're new to the world of high-deductible health plans and HSAs, you may be feeling a little overwhelmed about how to decipher which plans are HSA qualified. On a positive note, most insurance carriers will label which plans are HSA qualified.
Our team of seasoned professionals at Summerlin-Roberts is here to guide you through the process of offering the best employee benefits package to your employees. We understand that the rising cost of health insurance is a pain point for many employees, and offering a high-deductible plan that is HSA qualified is an attractive solution to help your employees offset costs.
If you're interested in learning more about what qualifies an insurance plan to be eligible for an HSA, our team is happy to help. We work with all major insurance companies, which also allows us to offer a variety of supplemental health plan solutions. We truly take the time to understand the needs of your business, which allows us to custom design our insurance solutions for each client on a fully insured or self-funded basis.
Please contact us at Summerlin-Roberts to learn more about how an HSA qualified insurance plan can offer significant savings without compromising health benefits for employees.