Can insurance premiums be paid through HSA

by Guest » Mon Aug 06, 2012 08:18 am
Guest

Can I arrange my health insurance premiums to be paid directly from an HSA account? In that case, I'll make regular payments to the account, and a part of it can be forwarded as the monthly premium.

Total Comments: 3

Posted: Mon Aug 06, 2012 02:54 pm Post Subject:

NO. Your HSA is for the payment of your High Deductible Health Plan deductible and other qualified health care expenses. Premiums are not a qualified expense because we all pay our insurance premiums with after-tax dollars. Unless we're self-employed, in which case we can deduct the cost of our non-employer-sponsored health insurance premiums for ourselves and our family members.

Don't stop contributing the maximum you are permitted to your HSA -- if you get to retirement time, you'll also be able to use the money for income purposes instead of medical expenses. Medical expense uses will be tax-free (under current tax law), but you would have to pay income tax if you use the money for any other purpose. In the meantime, all the money grows tax-deferred, which is an advantage to you.

Posted: Tue Aug 07, 2012 11:25 pm Post Subject:

Have to clarify a few things here...

For a person to use their HSA funds to pay for health insurance premiums, there are only a few allowances from the Fed GubMint:

1. It can be used to pay for health insurance continuation premiums, such as COBRA;
2. It can be used to pay for for health insurance premiums if you're collecting unemployment benefits;
3. For LTC coverage; and
4. Medicare and other "65 and older" premium needs.

Other than that? Nope!

InsTeacher 8)

Posted: Wed Aug 08, 2012 12:38 am Post Subject:

I didn't want to get into that because I was pretty sure it didn't apply to the OP.

But thanks for posting it anyway.

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