Is Short Term Medical HSA Compliant? - Exploring HSA Eligibility for Short Term Health Plans

Short term medical plans are a popular option for individuals seeking temporary health coverage. However, when it comes to Health Savings Accounts (HSAs), there are specific criteria that must be met for a short term medical plan to be HSA-compliant.

Short term medical plans typically do not qualify as HSA-compliant because they do not meet the requirements set by the Internal Revenue Service (IRS) for high-deductible health plans (HDHPs), which are a key component of HSA eligibility.

To be considered HSA-compliant, a short term medical plan must meet the following criteria:

• Have a minimum deductible amount as specified by the IRS for HDHPs
• Provide coverage for essential health benefits
• Not cover pre-existing conditions
• Not provide first-dollar coverage before the deductible is met

It is essential to carefully review the terms and conditions of a short term medical plan to ensure it aligns with HSA requirements before using it in conjunction with an HSA.

When considering short term medical plans, it's important to note that while they can be a handy solution for temporary health coverage, they fall short when it comes to Health Savings Account (HSA) compliance due to specific IRS guidelines.