Tuesday, January 15, 2013

Can I Pay My Michigan Health Care Premiums With My HSA Funds?

Pretty basic question, but you would be surprised on how many times I am asked.  Again, can you pay your Michigan health insurance premiums with funds that you have saved in your HSA savings account?

The answer is quick and simple, and that is no.  If you do withdraw money from your HSA savings account to pay for your premiums, that will be a penalty and you will pay taxes (consult a CPA to learn more). 

Their are some exceptions, which include:

1) Qualified long-term care insurance; or 2) Health insurance while you are receiving federal or state unemployment compensation; or 3) Continuation of coverage plans, like COBRA, required under any federal law; or 4) Medicare premiums.

Within our agency, we stay away from any tax questions as we prefer your local CPA to help you with that. 

To learn more about a Michigan health savings account, make sure to contact us today.