Can You Use HSA Funds When You No Longer Have Insurance?

Many people wonder if they can still use their HSA (Health Savings Account) funds if they no longer have insurance. The answer is yes, you can still use your HSA funds even if you no longer have insurance. However, there are a few things to keep in mind:

Even if you are no longer covered by an HDHP (High Deductible Health Plan), you can still use the funds in your HSA for qualified medical expenses without any penalty.

When you use your HSA funds for non-qualified medical expenses after losing your insurance, you will have to pay income tax on the amount withdrawn, along with a 20% penalty.

It's essential to check with your HSA provider for specific details and guidelines on using your funds when you no longer have insurance. Be sure to keep all receipts and documentation of your medical expenses to avoid any issues when using your HSA funds.

If you've recently lost your health insurance, you might be wondering whether you can still access those savings stored in your Health Savings Account (HSA). Good news: yes, you can! It's important to note that while your HSA funds remain available for qualified medical expenses, you'll want to be mindful of how you use them.