Veterans Health Coverage and HSAs (article)
One of the requirements of health savings account (HSA) eligibility is that the individual be covered by a high deductible health plan (HDHP), and no other coverage. Military coverage through TRICARE has historically failed to meet the definition of an HDHP; thus, if an individual is covered by such coverage, then the individual would be ineligible to contribute to an HSA.
On July 31, 2015, President Obama signed the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (H.R. 3236; now Public Law 114-41). This law provides that veterans receiving hospital care or medical services for a service-connected disability are not disqualified from participating in or contributing to an HSA. This provision becomes effective January 1, 2016.
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