What Happens to the Money in My HSA When I Change Plans?

Health Savings Accounts (HSAs) offer a convenient way to save for medical expenses while enjoying tax benefits. However, many individuals are often confused about what happens to the money in their HSA when they change plans.

When you change health insurance plans, your HSA funds remain with you. Here's what happens to the money in your HSA when you switch plans:

• The HSA is owned by you, not your employer or health insurance company. Therefore, the funds in your HSA are yours to keep, even if you change jobs or health insurance plans.
• You can continue to use the money in your HSA to pay for qualified medical expenses, regardless of your insurance plan changes.
• Changing plans does not affect the tax advantages of your HSA. Contributions are still tax-deductible, and withdrawals for qualified medical expenses remain tax-free.
• If you no longer have an HSA-eligible high-deductible health plan (HDHP), you can still use the funds in your HSA for qualified medical expenses. However, you cannot make new contributions to the HSA until you have an HDHP again.
• It's essential to keep track of your HSA funds and ensure you continue to use them for eligible medical expenses to maximize the benefits of your account.

Health Savings Accounts (HSAs) are your financial partners in managing healthcare costs, and when you change your health insurance plan, it's important to understand how that affects your money. Rest assured, the funds you have accumulated in your HSA are yours, and this remains true no matter what insurance plan you switch to.