HSA/dual insurance question.

Submitted by Tshell75 t3_125pggr in personalfinance

I currently have insurance through my partner. But I just started a new job that provides a high deductible medical plans. Which opens up the ability to have a HSA. So my idea is to keep the insurance I have, and purchase a high deductible plan from the new employer for myself and NOT the family and putting money into the HSA since they add an additional amount yearly to capitalize on that money, the trick is the insurance will only be on me and I’m unclear as to whether I can spend HSA money on the family prescriptions and office visits. that would be covered under of the other insurance.

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thewitchof-el t1_je5604i wrote

Both plans have to be qualifying HDHPs in order for you to be eligible to contribute to the HSA.

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ghalta t1_je57o7a wrote

You can only have a personal HSA if your only coverage is HDHP. So, as other replies already state, you need to drop the other insurance if you want to get the HSA.

If you do this, though, other people in your immediately family are able to use your HSA dollars for their healthcare expenses, even if they are covered by regular plans. HSA eligibility with regard to your health care plan is about putting money in, not taking it out. See the second-from-last footnote on this handy chart.
https://www.chard-snyder.com/uploads/miscellaneous/FSA-HSA_Contribution_Rules_v8.21.pdf

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DeluxeXL t1_je59bam wrote

> other people in your immediately family are able to use your HSA dollars for their healthcare expenses

Only if they are your spouse or dependents.

Who you can spend HSA on does not depend on your/their insurance at all.

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ghalta t1_je5adu2 wrote

True, fair enough. I see that the government's definition of "immediate family" is different than mine, as theirs includes parents and in-laws and siblings that are definitely not eligible to use your HSA funds.

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Bangkok_Dangeresque t1_je57ynq wrote

> I’m unclear as to whether I can spend HSA money on the family prescriptions and office visits

Virtually any healthcare spending is a qualified expense for HSA purposes. It's any medical expense that could be counted towards the medical expense deduction on your tax return, for you, your spouse, or any dependents, regardless of whether they're enrolled in the HDHP. It's pretty easy to spend HSA money. Less so to contribute it if you're trying to mix-and-match coverage.

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