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Hsa Insurance Plans Question & Answers

2016 January 17
by Sarah Fields

Donald asks…

Can I get a health savings account to pay my out of pocket expenses for dental treatment?

Everything I have read says that I need to have a High deductible health plan to be eligible. but I have a good health insurance plan that is not high deductible. Also I have a good dental plan, however my dental treatment (qualified under HSA) will cost me several thousand dollars over my coverage limit. Is there a way to get and use an HSA account to cover these expenses?
and if I am self employed or running a small business can I set up an FSA for myself?

Sarah Fields answers:

No. You can check at work to see if your employer offers a tax deferred Health Spending Account. This type plan allows you to put aside cash to cover health expenses that are not covered by insurance. The advantage is the expenses are then tax free.

But you can not use an Health Savings Account if you have other insurance. It must be your only coverage.

Michael asks…

What is the difference between the different health insurance plans, such as Indemnity, PPO, Personal Comp?

I’m trying to figure out the best plan for my 14 year old and there are so many to choose from that it’s becoming overwhelming. What are major differences between Indemnity, PPO, Personal Comp and HMO. Also, there are HSA accounts, but it looks like you have to be 18 to take advantage of this??

Sarah Fields answers:

Your questions are good, and more than one quick post can answer. The link below will help, but in a nutshell, what you typically are going to find with the plans you mention is that the lower the monthly premium, the less choice you have and who you see and what services you have done. Not a bad thing necessarily, but just now that.

Doesn’t your 14-year-old qualify for a parent’s health plan, or (if incomes are low) for Medicaid or SCHIP?

Lizzie asks…

Do I qualify to use an HSA?

I opened up an HSA a few years ago through a former company. Now I’m with a different company with a comprehensive medical insurance plan, rather than a high deductible plan.

Do I still qualify to continue to contribute and receive disbursements for my medical expenses (co-pays, x-rays, surgeries) through the HSA?

If so, it beats the socks off the company flex spending account which requires you to calculate ahead exactly what the expenses will be to avoid losing it. But I read that you have to have a high deductible plan to open one, hence the confusion.

Sarah Fields answers:

You have to have a HDHP to open an HSA. Without a HDHP you can’t contribute to the HSA. However, if you have a open HSA from a former HDHP with funds in it, you can use it for new medical expenses.

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