HSA and Marketplace

[mcb39]

Can a retired person contribute money to an HSA when they only insurance she has is the Marketplace?  I thought you had to be employed.  Correct me.

[kathyc2]

As long as the policy is HSA qualified. Most of the offerings around here have too high of a deductible to be HSA qualified.

[Lee B]

"Qualifying for an HSA Contribution

To be an eligible individual and qualify for an HSA contribution, you must meet the following requirements.

You are covered under a high deductible health plan (HDHP), described later, on the first day of the month.

You have no other health coverage except what is permitted under Other health coverage, later.

You aren’t enrolled in Medicare.

You can’t be claimed as a dependent on someone else’s 2022 tax return.

If you meet these requirements, you are an eligible individual even if your spouse has non-HDHP family coverage, provided your spouse’s coverage doesn’t cover you.

Also, you may be an eligible individual even if you receive hospital care or medical services under any law administered by the Secretary of Veterans Affairs for a service-connected disability."

Last year I had a client who paid penalties  on his HSA contributions because his spouse was a teacher and he was still covered under her policy.

[mcb39]

But, is the Marketplace considered a HDHP?

[kathyc2]

17 minutes ago, mcb39 said:

But, is the Marketplace considered a HDHP?

There are many different policies available on the marketplace.  Some are HSA qualified, others are not.  For 2022 the max deductible/out of pocket is 7,050 for single and 14,100 for family. Many times HSA is included in the plan name if it qualifies.  Have them look on their insurance card to see about the name and deductible. If single and max out of pocket limit on the card is more than 7,050 then no HSA.

[jklcpa]

It may not be in the name of the plan on the card and don't rule out the possibility if it isn't on the card.  To be sure, you must have the client check with the insurance company or look in the plan documents.

I purchased through the marketplace and have a Highmark Blue Cross plan that meets all the requirements and IS HSA eligible, but that is not on my card anywhere.  It WAS stated in the plan description when I purchased it though, and it IS stated in my member information when I log into the website.  Also, just like Kathy said, my deductibles are less than the figures she stated above.

[mcb39]

Thanks to all of you and my daughter-in-law; even though I wasted a whole day, I have  a handle on this now.  The next hurdle will be to get the program to accept the contributions.  Again, THANK YOU all so very much.  Happy Holiday to all.