Enrolling in an HDHP and HSA if entitled to VA Health Benefits

[sabo1323]

I am entitled to health care benefits through the VA based on a service-connected disability as well as deployment to a combat zone (qualifies veterans for enhanced health care benefits for 5 years after separation).  My new employer offers an HSA-compatible health insurance plan.  I want to enroll in the plan, but I have received conflicting answers about whether or not I am able to: (1) enroll in an HDHP in the first instance, because I am "covered" by the VA; and (2) have and contribute to an HSA bank account.  I have been enrolled in the VA health care program since separating from the Army in 2016, but I have only used my health benefits one time in March of 2018.

The VA said that my health benefits are not "insurance" even though they meet the minimum coverage requirements for purposes of the ACA.  Instead it is a "benefit."  I don't understand the difference because the VA provides me with a Primary Care doctor for preventative care beyond my service-connected disabilities.  The VA advised against terminating my health benefits as it "could" impact my other VA benefits.  I spoke to the plan administrator for my employer's plan and they said they see no issue with me enrolling in the HDHP or HSA, but they also didn't really know or have confidence in their answer, instead directing me to speak to an accountant.

[MarilynG1]

Thank you for your service! 

Yes, you can use your VA Health Care benefits and still be enrolled in an HDHP and HSA through your employer.

The general rule is that if you used VA benefits in the last three months, you could not enroll in an HDHP (this does NOT apply to disability-related VA benefits, however).

Click this link for a detailed discussion on VA Benefits with HDHP Insurance .