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How are PPOs and HSAs related?

Lively · September 20, 2017 · 2 min read

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The complex world of healthcare and taxes never seems to get easier. Let us break down healthcare plans and health savings options (HSAs) to make it a little easier for you.

HSA-Eligible Plan

The most important question to answer is whether your healthcare plan is HSA eligible? Per the 2019 IRS guidelines HSA eligible plans are defined as:

  • Have deductibles of $1,350 or more for an individual and $2,700 for a family and there can be no copays or coinsurance prior to hitting those deductibles (no cost for preventative care).

  • Have an out-of-pocket maximum of $6,750 or less for an individual and $13,300 or less for a family.

These qualifications allow you to contribute as an individual or family to an HSA during your plan year. HSA contribution limits, as set by the IRS, are $3,500 for individuals and $7,000 for families for 2019.

There are many health plans that can qualify for these specifications including a PPO or HMO. However, an HSA eligible plan is commonly referred to as a high deductible health plan (HDHP). So if you see that in your employer’s benefits information, an HSA is likely to follow.

And remember, an HSA is not a healthcare plan but works in combination with an HSA eligible healthcare plan to create tripe-tax health savings.

Existing HSA

But wait! If you already have an HSA, from previous health plans and employers, you still have access to your HSA. It’s yours, just like a 401k or IRA! Don’t forget unlike an FSA, HSAs have no “use it or lose it policy.” As such if you switch to a non-eligible HSA plan, you still have access to your existing HSA to pay for qualified out-of-pocket medical expenses or let grow for years to come. You are, however, unable to actively contribute to that HSA.

You Own Your HSA

An HSA is yours. It goes with you from job to job, healthcare plan to healthcare plan, and HSA provider to HSA provider. We might suggest Lively, as it’s free for individuals. HSAs can be used in any of these circumstances noted above to pay for qualified out-of-pocket medical expenses or as a health saving vehicle for retirement. Eligibility only changes HSA contributions. Enjoy your HSA savings, your earned it!

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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Benefits

2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

Benefits

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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