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Health Savings Accounts Questions with solutions 2024
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Health Savings AccountsHSAs are tax advantaged. In this context, tax advantaged means:
Funds contributed to the account are not subject to federal income tax at the time of
deposit.
Interest or earnings that accumulate in the account are not subject to federal income
tax.
Funds taken from the account to pay for qualified medical expenses—at any time—are
not subject to federal income tax. - answer What are the three ways that an HSA is
tax advantaged?
What are the two purposes of an HSA? - answer -First, they promote savings for
future health-care expenses.
-Secondly, their intent is to gently prod the public into consumer-driven health-care
products by offering tax incentives to those who elect to enroll in such plans.
What is the maximum contribution to an HSA in 2019? - answer Individual $3,500
Family $7000
If someone else contributes to my HSA, does it count toward my maximum? - answer
All contributions to an HSA, regardless of source, count toward the annual maximum.
Are contributions toward an HSA tax deductible? - answer Yes
Are employer contributions to an HSA taxable? - answer Not to the employee, and it
is deductible for the employer.
Who can open up an HSA account? - answer An individual or an employer
What are the four requirements for opening an HSA? - answer Have a qualified high-
deductible health insurance plan in place;
Have no other health-care coverage (with a few exceptions);
Not be enrolled in Medicare
Not be claimed as a dependent on someone else's tax return.
If an insured has a post-deductible health FSA or HRA does the deductible on that plan
have to be equal to or higher then the HDHP in order for the beneficiary to make
contributions to the HSA? - answer No, the post-deductible health FSA or HRA
deductible can be lower.
Can an insured have a retirement HRA and still make contributions to an HSA? -
answer Yes. This arrangement pays or reimburses only those medical expenses
, incurred after retirement. After age 65, no further contributions can be made to an HSA,
although accumulated funds can be used to pay qualified medical expenses at any time.
What are the two main components of an HSA plan? - answer A High Deductible
Health Plan [HDHP]'
A Health Savings Account. [HSA]
What are the two factors that define a HDHP? - answer 1.] A high-deductible health
plan is a health insurance plan offered by private insurance companies with lower
premiums and higher deductibles than a traditional health plan.
2.] An HDHP has a maximum limit on the annual deductible and out-of-pocket medical
expenses that the insured must pay for covered expenses. Out-of-pocket expenses
include co-payments and other amounts but do not include premiums.
Do prescription drug costs count toward the HDHP deductible? - answer In general
yes, if they are covered by the plan.
What medical expenses would not count toward the deductible of the HDHP? - answer
Any medical expenses which are not covered by the plan. As a general rule, the HDHP
deductible must apply to all medical expenses (including prescriptions) covered by the
plan.
What is the minimum deductible amounts that an HDHP must have in 2019? - answer
The IRS defines a high deductible health plan as any plan with a deductible of at least
$1,350 for an individual or $2,700 for a family.
What is the highest MOOP dollar amount allowed by law in 2019? - answer An
HDHP's total yearly out-of-pocket expenses can't be more than $6,650 for an individual
or $13,300 for a family.
Does the MOOP for an HDHP include deductibles, copayments, and coinsurance? -
answer Yes
What are the out-of-pocket maximum limits for 2019? - answer Self-only $7,900
Family $15,800
In an HDHP, what does the term "out-of-pocket maximum" mean? - answer Its a
ceiling on the amount of money insureds will spend annually on health costs, excluding
premium payments.
If the HDHP uses a network, do out of network services count toward the out of pocket
maximum? - answer It depends on plan rules, but it is not required, and in general,
these expenses do not count toward the out of pocket maximum.
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