What Happens to HSA Money When You Change Insurance?

Health Savings Accounts (HSAs) are a valuable tool for individuals to save for medical expenses while enjoying tax benefits. But what happens to the money in your HSA when you change insurance plans?

When you switch insurance plans, your HSA funds remain yours to keep. They are portable, meaning they stay with you regardless of changes in your insurance coverage. Here’s what happens to your HSA money when you switch insurance:

• No Loss of Funds: Your HSA balance rolls over without any loss when you change insurance providers. This applies whether you move from one high-deductible health plan (HDHP) to another, or to a different type of plan.
• Continue Contributions: You can keep contributing to your HSA as long as you are enrolled in an HDHP. These contributions are tax-deductible and can continue to grow tax-free, even if you switch insurance plans.
• Use for Medical Expenses: The money in your HSA remains available for qualified medical expenses. You can use these funds to pay for eligible healthcare costs, including deductibles, copayments, and more.
• Investment Options: Some HSAs offer the option to invest your funds once they reach a certain limit. If your new insurance plan is HSA-eligible, you can continue to invest and grow your HSA savings.

It’s essential to stay informed about the rules and regulations regarding HSAs when changing insurance plans. Understanding how to manage your HSA funds effectively can help you make the most of this valuable savings tool.

When you change your insurance, rest assured that your Health Savings Account (HSA) funds are still yours to manage and spend. They don't disappear when you switch providers!