HSA Compliance

Hospital Deductible Insurance
and Health Savings Accounts

 
 

Compatible with:

  • All HDHP Plans
  • Health Reimbursement Accounts (HRAs) and
  • Health Savings Accounts (HSAs)
           This plan works with HSAs!          Questions  (804) 273-9797
 
Pairing other “gap” plans that cover both inpatient and outpatient expenses with a high deductible policy will result in loss of eligibility for HSA tax deductions.

Hospital Deductible Insurance, however, was specifically designed to comply with the HSA regulations. Here’s how it works:

 

HSA legislation1 prohibits anyone covered under a qualifying high deductible health plan and also covered under “any health plan which is not a high deductible health plan“ from taking a tax deduction for an HSA.

Title XII, Section 223 provides an exception for “other permitted insurance” which does not result in disqualification including (c)(3)(C) “insurance paying a fixed amount per day (or other period) of hospitalization”.