Healthcare Beginner: Introduction to Health Savings Accounts

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Health savings accounts are limited to individuals who _______.

Are working

Don't have access to employer-sponsored health insurance

Have annual income below $250,000

Have coverage under a qualified health insurance plan

Have coverage under a qualified health insurance plan. Health savings accounts are available to individuals who have coverage under an HSA-qualified plan, but none of the other limitations apply.

Which of the following tax advantages apply to HSAs?

Personal contributions to an HSA are tax-deductible

Investment earnings on funds in an HSA are tax-free

Withdrawals for qualified medical expenses are tax-free

All of the above

All of the above. These are the three tax advantages that HSAs offer.

Health savings accounts are completely portable, meaning that you can take your HSA with you when you _______.

Change jobs or become unemployed

Change your medical coverage or marital status

Move to another state

All of the above

All of the above. You can always keep your HSA account and/or take it with you regardless of changes in your circumstances.

A disadvantage of having a health savings account is that you must switch to a plan that is HSA-qualified, if you do not currently have such a plan.

True

False

True. HSA-qualified insurance has high deductibles as well.

One of the advantages of health savings accounts is that the HSA-qualified insurance provides _______.

Protection against high or unexpected medical bills

The benefit of the lower fees negotiated between their insurance carrier and their health care providers, instead of paying the full charges

Coverage for preventive care services to help you maintain their health and avoid illness and disease

All of the above

All of the above. HSAs provide all these advantages to purchasers of HSA-qualified insurance.