Can I Have Catastrophic Only Coverage and Still Have an HSA?

Yes, you can have catastrophic-only coverage and still have an HSA. Catastrophic plans are high-deductible health plans that are compatible with Health Savings Accounts (HSAs). This option can be particularly attractive for those who are generally healthy and want to save on monthly premiums while having protection against major medical expenses.

Having a catastrophic plan with an HSA allows you to:

• Save money on premiums: Catastrophic plans typically have lower monthly premiums compared to traditional health insurance plans.
• Benefit from tax advantages: Contributions to an HSA are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free.
• Build a financial cushion: The funds in your HSA can be saved and invested for future medical expenses or used for retirement once you turn 65.

However, it's important to note that with catastrophic coverage, you'll have a high deductible that must be met before the insurance starts paying for your medical expenses.

So, while you can have catastrophic-only coverage and still have an HSA, it's essential to consider your healthcare needs, financial situation, and risk tolerance to determine if this option is the right fit for you.

Absolutely! You can have catastrophic-only coverage while also enjoying the benefits of an HSA. Catastrophic health plans are designed for individuals who want to keep their monthly costs low while still protecting against significant health expenses.