I rarely pass by active duty military or a Veteran in uniform without stopping to say “thank you”. I’ve even been known to anonymously pick up the tab for a group of active duty military who may be setting at a table close to me in a restaurant. Our military is worthy of great respect.
Occasionally I come across something that puzzles me a bit in regards to Veterans, and my blog today is about one of those puzzling moments.
Health Savings Accounts (HSAs) were signed into law in 2003. HSAs, when coupled with a high-deductible health insurance plan, allow consumers to put money aside in a tax-deferred account to pay for current and future medical expenses.
Each year the government sets the limit for how much can be deposited into these accounts. For 2013 you can deposit $3,250 (or $6,450 if you have dependents on your health insurance). You can also deposit an additional $1,000 if you are 55+.
This is true for everyone but Veterans, and this is what puzzles me.
I admit I don’t understand the logic in the legislation, but the facts are clearly laid out. If you use VA benefits for anything other than dental, vision, or preventive care, you are ineligible to deposit money into your HSA for three months. If you use your benefits once, you reduce your allowed deposits into your HSA by one-fourth. Use them twice and you could be cutting your allowed HSA deposits by half. Puzzling indeed!
There is some encouraging news, however. A Veteran recently asked me if going to the VA for a service-related injury would disqualify him for depositing into his HSA. It was a good question and well worth running by our contact at the Treasury Department.
According to our contact, going to the VA for a service-related injury does not disqualify you from making deposits into your HSA. Why? Because the VA visit is for a specific “accident” related injury. The HSA legislation does allow for accident coverage in addition to the qualified health insurance, and this treatment falls into that category. That news certainly made my day!
It is also heartening to know there has been legislation introduced on more than one occasion that would disregard VA benefits entirely when considering HSA deposits. No news on this yet. It’s comforting to know we have national heroes who protect our freedoms and our form of government so these wheels of a free republic can turn.
If you’re a Veteran or active duty military – Thank You. Next time your meal is paid for at a restaurant remember that it’s because someone appreciates your service. It’s a small token of a grateful heart.
Like what you see? Subscribe to our blog via email to get the latest updates on HSAs, health insurance, wellness and company news!