Obamacare Plans and HSAs

The question has arisen can an individual purchase health insurance through a government marketplace and also have an HSA?  

Under the ACA, health insurance policies must provide certain deductible-free preventive care services and individuals with policies that do not provide those deductible-free preventive care services would be subject to the uninsured penalty, whereas a policy conforming to the ACA deductible-free preventive care provisions would not meet the high deductible requirements of a high deductible health plan (HDHP).

However, Notice 2013-57, 2013-49 IRB, clarifies that a health plan won't fail to qualify as a high deductible health plan (HDHP) under Code Sec. 223(c)(2) merely because it provides, without a deductible, the preventive health services.

So then the issue becomes whether or not the health plan purchased through the marketplace qualifies as a high deductible plan.  The marketplace offers four levels of plans Bronze, Silver, Gold and Platinum. They are designed, on an average to pay 60%, 70%, 80% and 90% respectfully of the policyholders medical costs. 

It would appear that taxpayers with bronze and perhaps silver plans could continue to contribute to their HSA plans. However, one should first double check to verify that policy meets the HSA HDHP requirements, which for 2015 and 2016 are:

 

Minimum Annual
Deductible
Maximum Annual
Out of Pocket Expenses
 
2015
2016
2015
2016
Self-Only
1,300
1,300
6,450
6,550
Family
2,600
2,600
12,900
13,100

 

If the taxpayer already has an HSA plan and the marketplace policy does not meet HDHP requirements the taxpayer cannot make contributions to the plan but can still be used for qualifying health expenses.

March 03, 2016 by Lee Reams Sr.
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