Can You Establish a 2018 HSA Separate from an Insurance Policy?

Health Savings Accounts (HSAs) are a valuable tool for managing healthcare costs, allowing individuals to save money tax-free for medical expenses. One common question that arises is whether you can establish an HSA separate from an insurance policy. The answer is yes, you can have an HSA without having an accompanying insurance policy. Here’s how it works:

HSAs are individual accounts that are owned by the accountholder, not the insurance company. This means that you can open an HSA on its own, regardless of whether you have insurance coverage. However, there are a few eligibility requirements to keep in mind:

• You must be covered by a High Deductible Health Plan (HDHP) to qualify for an HSA.
• You cannot be covered by any other health insurance that is not an HDHP, with some exceptions like dental, vision, or specific injury insurance.
• You cannot be enrolled in Medicare.

Aside from these requirements, you are free to establish an HSA independent of your insurance coverage. This can be beneficial for individuals who have an HDHP through their employer but want more control over their healthcare funds or for those who are looking to save specifically for future medical expenses.

Remember that contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses. So, having a separate HSA can offer flexibility and additional savings opportunities.

Health Savings Accounts (HSAs) are incredibly useful for managing healthcare costs, allowing individuals to save money tax-free for unexpected medical expenses. One important aspect many people might wonder about is if it’s possible to set up an HSA without being tied to an insurance policy. The good news is that you can absolutely have an HSA independently of an insurance plan!