#029 – How To Structure Your Health Savings Account gives you a list of ten (10) easy steps to ensure that you are 100% covered by your High Deductible Health Plan and Health Savings Account from the Get-Go!

1. Enroll in a qualified High Deductible Health Plan (aka HDHP)
2. Open a Health Saving Account (aka HSA) – click here to see the HSA I use
3. Identify your Enrollment and Effective Date for your plan year
4. Review ALL of your plan options
5. Check your existing savings
6. Calculate Out Of Pocket Maximum
7. Determine Your HSA Contribution Limit (Single, Family, 55+)
8. Make certain your Out Of Pocket Maximum IS NOT higher than your HSA balance
9. Use payroll deduction for your remaining HSA contributions
10.  Plan & Prepare to have enough additional ordinary non-HSA savings to make the necessary lump-sum contribution on January 1st of the following year to top-off your HSA to match your annual deductible

An Embedded Deductible is an important plan feature for non-single policyholders (i.e. married couples, single-parent heads of household and families.  An embedded deductible limits the deductible for any one covered person to the individual deductible.  If the deductible for a plan is $5,000 for an individual and $10,000 for a married couple, head of household or family, anyone covered person need only meet the individual deductible of $5,000 rather than the $10,000.  Should another family member have a claim in the same year, the next person in the family must also meet another $5,000 deductible.

I receive nominal compensation from Lively HSA at absolutely no cost to you.  Learn more about Lively here

Over 55 years old?  You can (and should) add an additional $1,000 every year to your HSA which is allowed by the IRS in order to allow you to catch-up as you have fewer years to contribute before reaching Medicare-eligible age.

Over 55 years old AND married??   See above AND open a SEPARATE HSA account for your spouse.  Your spouse is eligible to add and additional $1,000 every year to your spouse’s HSA.  The IRS does not allow you to add $2,000 to one account.  Consider opening your spouse’s account where I have mine, with Lively HSA.

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