South Carolina Insurance Practice Exam

Which of the following is NOT a qualification for establishing a Health Savings Account (HSA)?

1. Enrolled in a health plan with a prescription drug benefit

2. Must have a qualifying high-deductible health plan

3. Must be under age 65

4. Cannot be claimed as a dependent on another's tax return

The correct answer is: Enrolled in a health plan with a prescription drug benefit

Establishing a Health Savings Account (HSA) involves several specific qualifications, and one key aspect is that an individual must be enrolled in a qualifying high-deductible health plan. This means that the health plan must meet certain deductible and out-of-pocket expense thresholds set by the IRS. Regarding the requirement about prescription drug benefits, it is important to understand that there is no stipulation that an individual must be enrolled in a health plan that specifically includes a prescription drug benefit in order to establish an HSA. The essential requirement is simply that the individual has a high-deductible health plan; the nature of that plan's coverage for prescription drugs does not impact eligibility for the HSA. Additionally, the age requirement states that individuals must be under age 65 to contribute to an HSA, as individuals over 65 typically qualify for Medicare, which makes them ineligible for HSAs. Moreover, to establish an HSA, one cannot be claimed as a dependent on another person's tax return, ensuring that the account is held independently. In summary, the correct answer centers around the fact that while high-deductible health plans are necessary for establishing an HSA, enrollment in a plan with a prescription drug benefit is not a requirement, making it