Health Savings Accounts & Pre-Ex Conditions

	Individual & Family Health Insurance
	Small Business Health Insurance

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Pre-Existing Condition Exclusions and HSAs

HSA-compatible health insurance plans contain the same pre-existing condition provisions present in other health insurance plans.  Most individual plans will apply the pre-existing condition exclusion -- whatever your previous health insurance history.  Employer-sponsored plans follow the dictates of HIPAA, waiving the pre-existing condition exclusion waiting period based on prior continuous health insurance coverage.

Insurance Underwriting Requirements

Unless coverage is provided through an employer-sponsored benefits program, your HSA-compatible High-Deductible Health Plan insurance will be subject to normal insurance company underwriting requirements.

If ongoing medical circumstances have prevented you from obtaining traditional medical insurance, you are unlikely to get a better outcome in applying for an HSA-compatible high deductible health plan.

HSAs Help in Insurance Transitions

What if you find yourself in a situation in which you're subject to a health plan's pre-existing condition exclusion?  If you've previously established an HSA, you've mitigated your risk.

For example, assume you've decided to become self-employed and you've terminated coverage under your prior employer's group health plan.  You've obtained a new individual health insurance plan, but it doesn't provide pre-existing condition coverage during your first 12 months under the policy.

Fortunately, costs for treatment of the pre-existing condition ARE eligible HSA expenses.  So you can use HSA funds, without tax consequence, to pay for the treatment not initially covered by your new plan.

This is just one example of how HSAs can provide some cushion when you face transitions impacting your health insurance.  With an HSA, you have a tax-advantaged health care funding tool that can work to your financial advantage in innumerable scenarios.