What to Do with HSA If You Change Plans - Your Complete Guide

If you have a Health Savings Account (HSA) and you are changing health insurance plans, you may be wondering what to do with your HSA. Here are some helpful steps to guide you through this transition:

1. Understand Your Options:

• Review your new health insurance plan to see if it is HSA-eligible.
• Check if your current HSA provider allows you to keep your account even if you change plans.

2. Decide How to Proceed:

• If your new plan is HSA-eligible:
• You can continue using your existing HSA for medical expenses.
• You can also contribute to your HSA as per the new plan limits.
• If your new plan is not HSA-eligible:
• You can no longer contribute to your HSA, but you can still use the funds for qualified medical expenses.
• You can consider converting your HSA to an Individual Retirement Account (IRA) for retirement savings.

3. Communicate with Your HSA Provider:

• Inform your HSA provider about your plan change.
• Ask for guidance on how to proceed based on your new insurance.

4. Keep Track of Eligible Expenses:

• Continue to save your receipts for qualified medical expenses even if you are no longer contributing to your HSA.
• You can reimburse yourself from your HSA at any time for past expenses.

By following these steps and staying informed, you can effectively manage your HSA when changing health insurance plans.

Transitioning between health insurance plans can be confusing, especially when you have a Health Savings Account (HSA). Knowing what steps to take can help ease the process.

1. Review Your New Plan:

• Make sure to verify if your new health insurance plan qualifies as HSA-eligible by checking its guidelines.
• Contact your current HSA provider to confirm if you can maintain your account while switching health plans.

2. Determine Next Steps:

• If your new insurance is HSA-eligible:
• You can seamlessly continue using your HSA for eligible medical expenses.
• Updating your contributions according to the new plan limits will allow you to maximize your savings.
• If your plan doesn't qualify for HSA:
• Although you can’t contribute to it, your existing HSA funds remain available for qualifying medical expenses.
• You might think about converting to an Individual Retirement Account (IRA) for long-term investment.

3. Communicate with Your HSA Provider:

• Inform your HSA provider about your plan change as they can guide you through any necessary updates.
• Ask any questions for clarity on the use and management of your HSA under your new health plan.

4. Track Your Medical Expenses:

• Don't forget to keep all receipts for qualified medical expenses, which are crucial for future reimbursement.
• Even if you stop contributing, you can always reimburse yourself for previous eligible expenses from your HSA.

By staying organized and informed about your options, managing your HSA while changing health plans can become a straightforward task.