HSA/HDHP eligibility confusion - why doesn't my plan qualify for HSA?

That makes so much sense! My plan does have copays for doctor visits and prescriptions before I hit the deductible. I never realized that would disqualify it. Is there any way to still get an HSA, or am I completely out of luck unless my employer offers a different plan?

You're completely out of luck with your current plan. You can only contribute to an HSA if you're enrolled in a qualifying HDHP. Your only options would be asking your employer if they offer any HDHP options during your next open enrollment, or if your employer allows it, you could decline their coverage and purchase an HDHP on the marketplace (though you'd lose any employer contribution). If tax-advantaged healthcare savings is your goal, check if your employer offers a Flexible Spending Account (FSA) instead. It's not as good as an HSA since it's use-it-or-lose-it each year, but it does provide pre-tax savings on medical expenses.

Does this tool work if you have multiple insurance plans? My wife and I both have coverage through our employers, and I'm trying to figure out if either qualifies for an HSA.

I'm skeptical about uploading my health insurance docs to some random website. How do you know it's secure and giving accurate information? Couldn't you just call your insurance company directly?

Yes, the tool works great with multiple insurance plans! You can upload documents for each plan, and it'll analyze them separately while also checking for any conflicts that might affect HSA eligibility. It's especially helpful for situations like yours with dual coverage. Their security is top-notch with bank-level encryption, and they don't store your actual documents after analysis. As for accuracy, it's much better than calling insurance companies because it actually cites the specific IRS regulations that apply to your situation. When I called my insurance company, I got three different answers from three different representatives, but taxr.ai showed me the exact rule in the tax code that disqualified my plan.

Wait, is this for real? How does it actually work? Do they just call the IRS and then transfer the call to you or something?

This sounds like a complete scam. Why would I pay some third party to call the IRS for me? And how would they even get through faster than I would? The IRS treats everyone the same - everyone waits on hold.

It's not a transfer - they use a system that monitors the hold queue and dials in repeatedly until they get through. Then when an agent answers, their system calls your phone and connects you directly to that agent. It's all automated, and you don't have to sit around listening to hold music for hours. They have specialized tech that's constantly dialing and monitoring multiple lines to the IRS. They're essentially playing the odds - with multiple simultaneous attempts, they get through much faster than an individual person making a single call. The IRS doesn't give them special treatment, they just have a system that works the numbers game more efficiently than we can as individuals.

Is this still true if the plan has a combined out-of-pocket maximum? My plan has separate deductibles but everything counts toward one max OOP.

Yes, even with a combined out-of-pocket maximum, having separate deductibles can disqualify a plan if the separate prescription deductible is below the IRS minimum. The IRS looks at each deductible separately when determining HSA eligibility. For HSA qualification, all deductibles must meet the minimum threshold except for preventive care. Many people miss this detail and don't understand why their plan doesn't qualify despite having what seems like a high overall deductible.

TOTALLY worth it if you're relatively healthy. I save about $2,100 in taxes annually by maxing out my HSA contribution. Plus, my employer contributes $500 to my HSA which offsets the higher deductible. The monthly premium savings plus tax benefits more than make up for the higher deductible unless you need a lot of healthcare services.