Can I pay Long Term Care premiums with my HSA?
You may use your HSA for long term care premiums provided your policy meets certain requirements and you stay within the allowable premium expenditure limits.In order to spend money from your HSA on long-term care, your long-term care insurance contract must:
- Be guaranteed renewable;
- Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed;
- Provide that refunds, other than refunds on the death of the insured or complete surrender or cancellation of the contract, and dividends under the contract, must be used only to reduce future premiums or increase future benefits;
- Generally not pay or reimburse expenses incurred for services or items that would be reimbursed under Medicare, except where Medicare is a secondary payer, or the contract makes per diem or other periodic payments without regard to expenses.
For 2008, the amount of premium you can pay with HSA funds are:
- Age 40 or Under – Up to $290
- Age 41 to 50 – Up to $550
- Age 51 to 60 – Up to $1,110
- Age 61 to 70 – Up to $2,950
- Age 71 or Over – Up to $3,680
