Is it necessary to be insured to contribute to an HSA account?

Question

I am choosing to drop my insurance coverage completely and I am not covered by any group health insurance. However, I would still like to establish an HSA savings account for medical expenses. Can I do it?

Answer 1

NO, you can't contribute to an HSA without having a qualified high-deductible plan...key word is qualified.  Not just any high deductible plan will do.

You should rethink your strategy because going without insurance isn't a good idea.  AND if you pay taxes the savings by making a contribution to the HSA could cover the cost of the plan (or at least a portion).

Please don't give me the "I'm healthy and never go to the doctor" reason for not having insurance.  When you get slammed by a drunk driver, slip in the shower, or have anything happen to you that's an accident you'll get my meaning....quoted by a guy who is also invincible and racked up $10k in medical bills just 4 months ago.  But, I was covered and at the end of the day won't have paid for any of those bills.  And, $10k in bills is like premium for 10 years so that's a pretty fair trade.

http://www.InsurancePickle.com

Answer 2

You will need to take out a HDP (High Deductible Plan). It is essentially a catastrophic policy with fairly low premiums, depending on your deductible.

I would stick with UHC, Blue Cross, Aetna or Humana. Also, please make sure that preventive coverage is NOT subject to the deductible.

I hope that helps!

Ed Harris

http://www.ohioquotes.com

http://majormedicalhealth.com/

Answer 3

The IRS establishes the rules on HSA. You must have a qualified plan to have an HSA. In essence, the money that you have put into the HSA has been accumulated without taxation. The rule is: Taxed in or taxed out. You can keep your present HSA account, but will be taxed when you use it. You could role it over into an IRA which would allow you to use it for critical illnesses, with a one time withdrawal. Ask your tax accountant what is the best way to roll this over depending on how it was set up to begin with.

Answer 4

http://www.flixya.com/blog/GOLDCash360/1...

Answer 5

I have met this sort of situation before,here is the resource I found helpful.http://health-insurance.onlinebestoffer....

Answer 6

No, you must have an HSA qualified health plan to be able to establish and contribute to and HSA account. If you want an HSA account visit a local agent that works with all the major companies in your area. The agent can find a health plan that's best for you and they don't charge any extra for the service. If you don't want the health plan you can always open a regular savings account at a bank but you won't get the tax benefits.