Can Health Savings Accounts Be Used For Insurance Premiums?

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   Christopher Lawrence

   Insurance Broker | Financial Consultant, Lawrence Insurance Consulting, Southern New Jersey

   Health Insurance Premiums can only be paid for with funds from a Health Savings Account under certain circumstances. The situations where Health Insurance premiums can be paid by a qualified distributions from a HSA is when an individual is over age 65 and paying for Medicare, when an individual is being covered by COBRA health care continuation coverage, and health care coverage while an individual is recieving unemployment compensation. That being said, one should try to avoid using their HSA for such purposes unless absolutely necessary. Your HSA is earning compound interest on the funds in your account, and at age 65 you will be able to start recieving distributions from the account in almost the exact manner as if it were an IRA. Given the benefits of having a duel health care expense/retirement fund that has a "healthy" ballance, one should try to minimize unnecessary distributions.

   Answered on October 29, 2013

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