Questions About HSA and Plans... Help Needed

Seeking Help
1

Hi everyone… I have some health insurance questions. My wife and I are on different plans through work because that’s what saves us the most money. I have a high-deductible health plan, which means I have a health savings account, while she doesn’t. We’re expecting a baby in spring and it’s really close in cost between two plans for just the two of us versus a family plan, so choosing her plan seems like the better choice for us financially. Here are my questions:

If I leave my high-deductible plan and switch to her plan, can I still use my HSA funds for medical expenses? I can’t put more money in it, but can I still spend what I have on qualifying expenses?

My employer puts $2,000 a year in my HSA as long as I’m on the high-deductible plan. If I switch to my wife’s insurance, can I still keep my own plan to get the $2,000 a year? The premiums for my plan are way below $2,000 a year, so staying on it for that benefit seems like a win for us. Is it okay to be double insured?

Looking forward to any insights you can share!

Oh, and I’m 29, live in upstate NY, and make around $91,000 a year.

3

Yes, you can still spend the money in your HSA if you switch from an HDHP.

No, you won’t get your employer’s HSA contribution if you switch to your wife’s plan.

4

Skyler said:
Yes, you can still spend the money in your HSA if you switch from an HDHP.

No, you won’t get your employer’s HSA contribution if you switch to your wife’s plan.

I agree with that.

Once the money is in your HSA, it’s yours to use whenever you want. You could use it now, later, or even save it for retirement. It’s your money.

There are guidelines for receiving company contributions to your HSA, like being enrolled in an HSA-qualified health plan and not having other non-qualifying health plans.

So, if you want to keep getting contributions, you’ll need to stay on your employer’s plan and not take your wife’s plan. As soon as you add her plan, contributions will stop.

You can still use your existing HSA funds after you join your wife’s plan, but you can’t add more without facing tax consequences.