Dual coverage with HSA question

[tim_mcf]

I’ve been researching this and I think I know the answer but I’m not 100% positive. I’ve read a bunch of posts on here and r/personalfinance but I want to be sure before I do anything.

Spouse has HDHP with $6500 contributed annually by employer to his HSA. Currently spouse, me, and 3 kids are all currently enrolled in this plan.

I’m starting a new job next week. My employer offers coverage for the employee at $0 premium. I have some chronic health issues that have cropped up in the last couple of years that would make a PPO plan desirable for me. Can I elect coverage through my employer for just me, while also remaining on the HDHP, and have my spouse still be eligible for HSA contributions? If spouse drops me from his plan, the amount his employer contributes to the HSA will decrease.

 

[foreverthankful]

@tim_mcf HSAs are individually owned. So if the HSA is in your spouses' name and he only has the HDHP plan, He can continue with the family HSA contribution limit with no issues.

 

[nanakat]

@tim_mcf

Can I elect coverage through my employer for just me, while also remaining on the HDHP, and have my spouse still be eligible for HSA contributions?

No, your proposed insurance change won't impact your spouse's (or his employer's) ability to continue contributing to his HSA to the family maximum, unless you enroll in a General Purpose FSA. So be careful you don't accidently enroll in one during the onboarding process. Childcare FSA and Limited Purpose FSA are compatible with HSA contributions so you should be okay there.

Additionally, you must notify both insurance companies of the other coverage that is in effect. The two companies will perform a Coordination of Benefits (COB) to determine which of the two is primary and which is secondary. Your employer plan (non-HDHP) should end up being the primary and your dependent coverage (HDHP) through your spouse should be secondary.