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HSA while having dual medical insurance coverage

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  • HSA while having dual medical insurance coverage

    I probably know the answer to this, but wanted to check with the group anyway. Both my wife and I are employed docs by 2 different organizations. We have always used health ins through her work (HMO). Her enrollment period just ended and we stayed with the same coverage. My employer had undergone a lot of changes this year and, to compensate for some benefits they had slashed (another topic entirely), I get health/dental/vision, etc for free now. My enrollement period just started. So, I will sign up for a PPO through my work. As part of that, I have access to set up an HSA (I have never had access to HSA before). My understanding though is that I am not eligible for HSA since I am on my wife's insurance, correct? TIA!

  • #2

    ^^ relevant IRS publication. Seems like you are not an eligible individual given that you have non HDHP coverage through your spouse. You might consider dropping coverage through your wife's HMO at the next open enrollment (or earlier if you're able to through a qualifying life event) to become eligible for HSA, assuming your employer PPO meets your insurance needs.

    You didn't mention if your employer offers non-HDHP plans (that wouldn't qualify for HSA under any circumstance). If you're considering dropping coverage through your wife's plan, next decision would be non-HDHP vs HDHP. Although HDHP allows you to contribute to HSA, a non-HDHP with free (to you) premiums may be better, depending on your risk tolerance and ability to self-insure.

    If family coverage under your new HDHP PPO is also free, a weird quirk to consider is that it seems as an eligible individual with family coverage you would be able to contribute the family max to an HSA, even if your wife is not eligible (i.e. if she continued coverage under her HMO). That point was belabored by me here and in the boglehead thread linked inside. JMO


    • #3
      Thank you so much for your response. Very helpful. I won't be able to drop coverage through my wife until next November, so looks like to HSA for this year. Besides, I am not sure we are ready to do HDHP just for HSA availability. The plan available to me is through Anthem with $2700 deductible/member ($5400 per family). We are not high consumers of healthcare for now (knock on wood) and my wife's HMO plan works for us (So Cal Kaiser); however, we are paying $300/month for it. What we may do next year is drop her plan and go with my Anthem HMO option since its free and I can choose any medical group that's part of Anthem HMO.