South Carolina Insurance Practice Exam

Which of the following decisions would a Health Savings Account (HSA) owner NOT be able to make?

1. The amount contributed by the employer

2. The amount of personal contributions

3. The type of investments held

4. When to withdraw funds

The correct answer is: The amount contributed by the employer

A Health Savings Account (HSA) owner retains significant control over various aspects of their account, particularly in terms of personal contributions, the types of investments held, and when to withdraw funds. However, the amount contributed by the employer is typically predetermined and guided by employer policies and federal regulations regarding contribution limits for HSAs. Although an employer may choose to contribute to an employee's HSA, the specific amount and timing of those contributions are not directly within the control of the HSA owner. The owner cannot decide how much the employer contributes; this decision is influenced by the employer's overall health benefits strategy and adherence to applicable laws regarding the maximum contribution limits set by the IRS. Thus, while the owner has considerable leeway in managing their personal contributions and investment choices, the employer's contributions are not something the owner can dictate. This distinction is crucial for understanding how HSAs function in the context of employer-sponsored health plans.