FAQs about Health Savings Accounts

Upholstery Journal | August 2009

by William J. Lynott

Who is eligible to open an HSA?

Anyone may apply for an HSA and its companion high-deductible health insurance policy, though individuals with serious pre-existing medical conditions may have difficulty finding a provider willing to accept them.

Where can I open an account?

There are scores of insurance companies and brokerage firms offering HSA coverage, including such major providers as Aetna, UnitedHealth Group and Blue Cross. HSAs can be obtained through thousands of independent health insurance brokers.

Does an HSA pay for the same things that regular insurance pays for?

HSA funds can be used to pay for any qualified medical expense, even if they are not covered by your health insurance. For example, most health insurance does not cover the cost of over-the-counter medicines, but HSAs can. If the money from the HSA is used for qualified medical expenses, the money spent is tax-free.

Do unused funds in a HSA roll over year after year?

Yes, the unused balance in a HSA automatically rolls over year after year. You won’t lose your money if you don’t spend it within the year.

Where can I get more detailed information about HSAs?

www.hsainsider.com

www.ustreas.gov/offices/public-affairs/hsa/

William J. Lynott is a freelance writer who specializes in business management and personal finance.

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