Page 16 - 2022 Insurity OE Guide FINAL

Health Savings Account (HSA) – Eligibility

If you are enrolled in one of the qualified High Deductible Health Plans (HDHP) on the first day of any month, you may be
eligible to contribute to a Health Savings Account (HSA) if:

O You are not covered by other non-HDHP coverage, such as a spouse’s plan. Exceptions may include permissible
coverage, such as specific injury insurance or accident, disability, dental, vision or long-term care insurance
O You are not enrolled in Medicare
O You do not receive health benefits under TRICARE
O You have not received Veterans Administration (VA) benefits within the past three months, except for preventive care.
If you are a veteran with a disability rating from the VA, this exclusion does not apply
O You cannot be claimed as a dependent on another person’s tax return
O You are not covered by a general-purpose Health Care Flexible Spending Arrangement (HCFSA) or Health
Reimbursement Arrangement (HRA)
Once you have set up an HSA, if your circumstances change and you become ineligible to continue to make
contributions to an HSA, you can keep the account as long as needed and use any available funds to pay for qualified
medical expenses income-tax-free. However, neither you nor Insurity will be allowed to make further contributions. Other
IRS restrictions and exceptions may also apply. We recommend that you consult a tax, legal or financial advisor to discuss
your personal circumstances.

In order to open and contribute to an HSA, you must be
Important HSA enrolled in one of the High Deductible Health Plan medical
Considerations plans Insurity offers.

Please Note: Employees participating in the The HSA is designed to work with your health plan to
2021 Health Care FSA and planning to switch protect you and your family. Here’s how an HDHP medical
to one of the HSA-eligible plans for 2022 can set plan works.
up and begin contributions to an HSA as follows: You are responsible for paying your covered medical expenses

O Employees with a zero balance in their up to the deductible limit stated in your health plan.
Health Care FSA at the end of 2021 can set O Your deductible is the maximum amount that you must pay
up and begin HSA contributions, effective toward your health care before benefits are paid by your
January 1, 2022 plan. Most plans will have different coinsurance levels for
O Employees with a balance remaining in their expenses incurred in-network and out-of-network
Health Care FSA at the end of 2021 cannot O You can, if you choose, use HSA funds to pay for your
set up or begin HSA contributions until the out-of-pocket expenses. Or, you can reimburse yourself
end of the FSA Grace Period, effective for those expenses sometime later. Be careful to save all
April 1, 2022 receipts! You are responsible for being able to prove, if
questioned by the IRS, that you used your HSA only for
qualified medical expenses

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