Health Savings AccountsFrequently Asked Questions

What is a HSA?

A HSA is money put in a special account owned by an individual to pay current and future medical expenses.

Who is eligible for a HSA?

An eligible individual is someone who is:

• Covered by a High Deductible Health Plan (HDHP).
• Generally not covered by any health plan that is not a HDHP.
• Not enrolled in Medicare.
• Not eligible to be claimed as a dependent on another person's income tax return.

Definition of High Deductible Health Plans

A health plan is a high deductible health plan (HDHP) if the plan satisfies both an annual deductible and an out-of-pocket expense requirement.

Year	Coverage	Minimum Annual Deductible	Maximum Out-of-Pocket Expenses
2007	Self	$1,100	$5,500
	Family	$2,200	$11,000
2008	Self	$1,100	$5,600
	Family	$2,200	$11,200
2009	Self	$1,150	$5,800
	Family	$2,300	$11,600

HSA Contribution Limits:

Year	Self	Family	Catch-up (age 55+)
2007	$2,850	$5,650	$800
2008	$2,900	$5,800	$900
2009	$3,000	$5,950	$1,000

Contributions may be made by:

• The individual
• The employer
• By others on behalf of the individual

HSA Distributions

Qualified Medical Expenses are medical expenses that are:

• Incurred on behalf of the HSA owner, spouse or dependents.
• Incurred after an HSA has been established.
• Not covered by insurance.
• Paid by the HSA owner, spouse or dependent.

If a distribution is not used for Qualified Medical Espenses:

• The distribution amount will be included in income.
• A 10% penalty will be assessed.  This penalty will be waived upon death, disability or attaining age 65.

* Consult your tax advisor regarding the tax advantages of a health savings account.