In most cases, you can use HSA funds to pay for the following premiums: Qualified long-term care insurance. Health coverage while you are receiving federal or state unemployment compensation. Continuation of health insurance coverage as required under federal law, such as COBRA.

What are the qualifications to be eligible for a Health Savings Account HSA deduction?

HSA Eligibility

• You must be covered under a qualifying high-deductible health plan (HDHP) on the first day of the month.
• You have no other health coverage except what is permitted by the IRS.
• You are not enrolled in Medicare, TRICARE or TRICARE for Life.
• You can’t be claimed as a dependent on someone else’s tax return.

Can HSA money be used to pay health insurance premiums?

By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums.

What kind of insurance can I pay with my HSA?

Eligible premiums include long-term care insurance, continuation insurance such as COBRA, health care while you’re receiving unemployment under state or federal law, and Medicare coverage after you turn 65. When you take distributions to pay these costs, like any other qualified expense, the money comes out tax-free and penalty-free from your HSA.

Can a health savings account be used to pay insurance premiums?

You can use a health savings account to pay your insurance premiums under certain circumstances. COBRA payments after leaving a job and Medicare payments after age 65 may qualify for payment through your HSA.

Do you have to have health insurance to open an HSA?

To be eligible to open a health savings account, you have to have a high-deductible insurance plan, and you can’t have any other health insurance coverage. The money you add to the HSA doesn’t have to be used the year you put it in – it can be rolled over for use in future years.

Are there limits to how much you can put in an HSA?

Health Savings Accounts. You can put money in an HSA up to the amount of your health insurance deductible or the annual IRS limit, whichever is less. As of 2018, the IRS limits were $3,450 for yourself or $6,900 for a family coverage plan.