Is it allowed - spouse with her own medical insurance + HSA and added as a dependent in my insurance + HSA?

[tabshe17]

Hi,
My spouse switched job and will be getting a good medical insurance + HSA at a lower rate. So I was thinking to switch her to that from mine. But since I am not allowed to remove her from insurance until next enrollment, there will be some overlap where she might have two insurance + HSA.

I am just contributing 1k to my HSA and employer is adding some more (with extra for dependent).

1. Can I do this and have her two insurance for this overlapping period?
2. If not, what would be my best option, if the insurance enrollment window at my company and hers doesn't overlap?
3. In future, if we have our own HSA accounts, are we supposed to use individual HSA for medical expenses OR as a family we can use any?

Thank you in advance.

[Mike9241]

there is no limit on the number of health insurance policies you can have.  the issue is that the "full coverage" policies must all meet the high-deductible test to maximize the ability to be covered by HSA(s). (certain types of policies do not count for the HDHP test such as dental, cancer, vision, accident, disability and other limited coverage insurance)  these is no such thing as a joint HSA.  with separate HSAs you could pay her qualifying medical expenses and she could use her's to pay your medical expenses. with both having an HSA the maximum contribution can be split between the accounts any way you want. 

an HSA can't be used to pay for health insurance.

you didn't say what type of health insurance coverage you have because if either spouse has family coverage, both spouses are treated as having family coverage or it's possible that both spouses have family coverage under separate plans. with family coverage, you must use the policy with the lowest annual deductible to see if the high-deductible test is met.

[Opus 17]

Can you contribute to an HSA?

Yes, as long as you have no disqualifying coverage.

Can your spouse contribute to an HSA?

Yes, as long as they have no disqualifying coverage.

Disqualifying coverage is anything that is not a qualifying HDHP.  This includes other types of health insurance or other health care reimbursement arrangements like an HRA or FSA.  If your spouse has primary insurance at her job and is also a secondary insured on your policy, they can still contribute to an HSA as long as both insurance polices are HSA-eligible. 

Your overall family maximum contribution is $7050.  You can split that between you any way you like but don't go over that total (and that includes employer contributions).

Once you have money in an HSA, you can spend it on qualified medical care for yourself, your spouse, and your dependents.  The rules for taking money out of an HSA are separate from the rules for making contributions. 

[NCperson]

@tabshe17 - other ideas....

1) any reason you can't drop your wife from your insurance plan now? That could be considered a "Qualifying Life Event"   Sugget checking with your HR / Payroll department

2) any reason you can't wait until Open Enrollment for 2023 and therefore 1/1/23 to move your spouse to her new employer's plan? No sense paying for two premiums for one person since you can't claim to both in any event.

3) Waiting to establish her HSA until Jan, 2023 shouldn't be an issue, since any expenses for her, you or your dependents can be claimed to either HSA in any event.  

4) as a family - whether from her new HSA (if you establish it in 2022 or not) - the maximum 2022 contribution is $7300, including anything the employers kick in.  (assumes you are both under 55 years old).

@Opus 17 - $7050??? I think that relates to the maximum out of pocket the high deductible plan can require to 'max out' on paying for deductibles, co-pays, co-insurances,etc under single coverage to meet the definition of a 'high deductible' plan.  It's $14,100 for family plans.  This is all unrelated to an HSA, right?   

[Opus 17]

---

@NCperson wrote:

@tabshe17 - other ideas....

@Opus 17 - $7050??? I think that relates to the maximum out of pocket the high deductible plan can require to 'max out' on paying for deductibles, co-pays, co-insurances,etc under single coverage to meet the definition of a 'high deductible' plan.  It's $14,100 for family plans.  This is all unrelated to an HSA, right?   

---

I guess I read the wrong line on the web site I was checking.