What Happens to HSA Money When You Change to PPO?

When you change from a High-Deductible Health Plan (HDHP) with an HSA to a Preferred Provider Organization (PPO) plan, you may wonder what happens to the funds in your Health Savings Account (HSA). Let's explore the implications of this transition.

HSAs are savings accounts specifically for healthcare expenses that come with tax advantages. Here's what typically happens to your HSA money when you switch to a PPO:

• The funds in your HSA remain yours, and you can continue to use them for eligible medical expenses.
• You can still make contributions to your HSA if you are enrolled in a qualified HDHP, even after switching to a PPO.
• If you no longer have an HDHP, you cannot make new contributions to your HSA, but you can still use the existing funds for medical expenses.
• It's crucial to understand the rules and regulations governing HSA rollovers and contributions to make informed decisions.

While changing from an HDHP to a PPO may alter your healthcare coverage, your HSA funds remain accessible for healthcare expenses. Consult with your benefits administrator or financial advisor for personalized guidance on managing your HSA during this transition.

When transitioning from a High-Deductible Health Plan (HDHP) with a Health Savings Account (HSA) to a Preferred Provider Organization (PPO) plan, it’s essential to know that your HSA funds are still your money, allowing you to spend them on qualified medical expenses without any penalties.