Texas Health Savings Account Eligibility

Health Savings Accounts (HSAs) have been created to ease some of the strain caused by high health insurance costs. Many states, including Texas, have Health Savings Accounts. HSAs are savings accounts that people can put money into for current or future medical expenses and for which people enjoy tax incentives.

Although HSAs are very helpful, not everyone qualifies to open one. Most adults qualify to open an HSA. However, the adults must have a health insurance policy that has a high deductible (a “high deductible health plan” or HDHP) and that is HSA-approved. Moreover, adults are not allowed to have other, certain types of medical coverage, like dental insurance or vision insurance. Furthermore, another requirement is that the adults cannot be enrolled in Medicare, and that they cannot be claimed as a dependent on someone else’s tax return.

It is important to note that employers can contribute to employees’ Health Savings Accounts. Moreover, contributions to HSAs can be deducted on federal tax returns. If an individual dies, her HSA account will pass on to her spouse, who can then use the money in the HAS as if he owns it. If an individual does not have a spouse, the HSA becomes part of the individual’s estate or will pass to the individual’s beneficiary.

Health Savings Accounts (HSAs) have helped many people. They offer an additional way for people to meet skyrocketing health care costs and thus take a burden off many people.

Contact Option 1 Health Insurance

Although Health Savings Accounts have been helpful, they do not eliminate the need for health insurance. For help finding the right Texas health insurance policy or plan that is right for you, contact Option 1 Health Insurance today.