What Happens to an HSA When You Change Insurance?

As you navigate through changes in your insurance coverage, you may wonder about the fate of your Health Savings Account (HSA). An HSA is a valuable tool that allows you to save money tax-free for medical expenses. Here's what happens to your HSA when you switch insurance:

When changing insurance plans, your HSA remains intact as it is owned by you, not your insurance provider. It's portable and can move with you regardless of the insurance company you choose.

However, there are a few things to keep in mind when transitioning your HSA:

• If your new insurance plan is HSA-eligible, you can continue contributing to your account and using the funds for qualified medical expenses.
• If your new plan is not HSA-eligible, you can still keep your existing HSA, but you won't be able to make new contributions to it.
• You can use the funds in your HSA for qualified medical expenses even if you no longer have an HSA-eligible insurance plan.

It's essential to stay informed about the specifics of your new insurance plan and how it affects your HSA. Be sure to review the terms and conditions to make informed decisions about your healthcare savings.

When changing your health insurance, it’s natural to have questions about your Health Savings Account (HSA). Good news: your HSA is a personal account that stays with you, regardless of your insurance plan changes.