HSA Frequently Asked Questions
My spouse has medical insurance through his/her employer. Am I eligible to participate in an HSA?
It depends. If your spouse has an individual (or employee only) medical coverage with no other insurance and you are enrolled in a high-deductible health plan, then yes, you are eligible to participate in an HSA.
But if your spouse participates in a general purpose health FSA or HRA, and those benefits cover your healthcare expenses too, then no, you are not eligible to participate an HSA. Why? Even though you are not covered by your spouse’s health insurance, the IRS considers your spouse’s health FSA or HRA to be “other insurance.”
An exception would be if your spouse has an HSA-Compatible FSA or what’s sometimes referred to as a “limited-purpose” FSA or HRA that covers vision and dental care expenses only. If your spouse participates in either an HSA-Compatible FSA or a limited-purpose HRA, then yes, you may participate in an HSA.
Can I be covered by my spouse's medical insurance at another employer and choose a medical plan with an HSA?
The answer in most cases is no. To be eligible for a HSA, an individual must be covered by an HSA-qualified Health Plan and must not be covered by other health insurance that is not defined by the IRS as a “high deductible health plan.” If the other medical plan is an HSA-qualified plan, you may have dual coverage under both plans. If you are covered by another medical plan that is not qualified for a HSA, you may enroll in a high deductible health plan, but not participate in an HSAor receive associated CMU contributions.
My spouse has traditional medical coverage through his/her employer. Am I eligible to participate in an HSA?
If your spouse has traditional medical coverage, such as a PPO or HMO, that provides individual (or employee only) coverage only, then yes, you are eligible to participate in an HSA, but only if you are enrolled a high-deductible health plan and your spouse doesn’t also have a general purpose health FSA or HRA that covers your healthcare care expenses.
If your spouse has a traditional health insurance plan that provides family coverage, and you have not exempted from that coverage, then no, you are not eligible to participate in an HSA. However, if your spouse has a traditional health insurance plan that covers him/her and your children only, then you are eligible to participate in an HSA.
My spouse and I have family coverage under a single high-deductible health plan. Can we both have an HSA?
Yes, you and your spouse may both have an HSA. However, the contributions to both HSAs cannot exceed the annual family limit. The IRS regulations limit the total amount you both may contribute to your HSAs and for 2024 calendar year, the annual family contribution limit is $8,300.
My spouse or children have another form of medical insurance, and those plans are not HSA-qualified plans. Can I choose a medical plan with an HSA and cover my dependents as secondary coverage to their current insurance?
Yes, dependents can be covered under a medical plan with a HSA as secondary coverage, even if that dependent has other non-HSA qualified coverage, and it does not impact the employee's eligibility for the HSA plan. The CMU medical plan with an HSA will always pay last after the other medical plans have calculated the amounts they will pay.
I’m on Medicare (or Tricare or VEBA), can I contribution to an HSA?
No, you are not eligible for an HSA after you have enrolled in Medicare or TRICARE or VEBA or if you have received health benefits from the Veterans Administration for a non-service-connected disability within the past three months. If you had an HSA before you enrolled in Medicare, you can keep it. However, you cannot continue to make contributions to an HSA after you enroll in Medicare. You may enroll in a high deductible health plan, but not participate in an HSA and/or receive associated CMU contributions.
My spouse is enrolled in Medicare, can I contribution to an HSA?
Yes, if you are otherwise HSA-eligible. You can make HSA contributions, up to the family maximum if you are covered on a two-person or family contract (even if your spouse isn’t HSA-eligible). For some couples, this provision in the law allows them to continue to contribute to an HSA (and build tax-free balances) for several years after the older spouse enrolls in Medicare.
Note: The HSA accountholder (i.e., employee) is not eligible to make HSA contributions if enrolled in Medicare, TRICARE or VEBA. See FAQ above.
Can I have an HSA if my spouse has a general purpose health FSA for health care through his/her medical plan?
No, you are not eligible to participate in an HSA if your spouse has a general purpose health FSA. Your choices are to not choose the medical plan with a HSA, or your spouse must not elect to participate in the FSA program through his/her medical plan.
My spouse and/or children have another form of medical insurance, and those plans are not HSA-qualified plans. Can I choose the CMU HDHP plan with an HSA and pay for the medical expenses of my dependents not covered by my medical plan?
Yes, the qualified medical expenses for IRS-qualified dependents can be reimbursed from your HSA, even if that dependent has other non-HSA qualified medical coverage. Those expenses for dependents not covered under your medical plan do not apply to the deductible and coinsurance for your CMU medical plan.
NOTE: They must be claimed as your IRS dependent to use your HSA funds to pay their medical expenses, if they are not, they can set up their own HSA account through a financial institution.
If CMU contributes to an HSA, can those funds go to my HSA account through my bank rather than CMU’s account?
Not directly. To receive CMU’s contribution to an HSA, it will automatically go to the HSA set up for you by CMU. However, one rollover to another HSA can be completed in a 12-month period, in which you could rollover your CMU HSA funds to a personal HSA.