NEW YORK, Oct. 9, 2019 /PRNewswire/ -- HSA company, Clarity Benefit Solutions, answers frequently asked questions about eligibility.
Health Savings Accounts (HSAs) allow employees to save money for out-of-pocket medical such as doctor visits, dental and vision care and prescriptions. Plus, its numerous tax advantages allow employees to keep more of their hard-earned money. It can be used or saved to pay for health care costs incurred in the future.
The following are answers to some FAQs about HSA eligibility.
Who is eligible for an HSA account? Technically, the IRS mandates that although HSAs are individualized accounts, it can be used for the employee's family. Once the account is established, it can be utilized to pay for qualified medical expenses for the employee, the employee's spouse, and any dependent children. Anyone is eligible for an HSA account without being employed—or through an employer—as long as he or she participates in a qualified (HDHP). People are not eligible for an HSA if they are covered by another health insurance plan, such as a spouse's plan, that is not a qualified HDHP, claimed as a dependent on someone else's tax return, or enrolled in Medicare benefits.
What types of expenses does an HSA pay for? HSA accounts can be used to cover an employee's qualified health care expenses, which are defined by Internal Revenue Code Section 213(d). These monies are tax-advantaged so the employee can reduce total health care costs; and the funds rollover year-after-year. Plus, because employee contributions are made before taxes are applied, an employee's taxable income is reduced. This includes dental and vision. Some expenses not qualified are surgery for cosmetic reasons, health club dues, and toiletries and cosmetics.
How much money can be set aside for an HSA account? The amount that any employee or other person that can contribute to HSAs depend on the type of HDHP coverage as well as the employee's age. For example, if an employee has self HDHP coverage, he or she can contribute up to $3500; for family HDHP coverage the amount is $7100.
About Clarity Benefit Solutions: Clarity Benefit Solutions HSA Administration Company provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
SOURCE Clarity Benefit Solutions