Tricare Help

Tricare and HSAs

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Q. You recently responded to a question about Health Savings Accounts and Tricare Standard and Prime. The short answer was that neither Standard nor Prime reach the HSA “high deductible” threshold. Is the same true for Tricare Reserve Select, since that program requires payment of premiums?

A. No Tricare plan qualifies as a high-deductible health plan for HSA purposes. As such, Tricare and HSAs simply don’t mix.

Can I contribute to HSA while covered under Standard?

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Can I contribute to a health savings account when I am covered by Tricare Standard?

Active-duty and retired military personnel who are covered under Tricare don’t meet the minimum annual deductible requirements to make an HSA useful. Tricare does not qualify as a “high deductible health plan” for HSA purposes. You could enroll in an HSA, but the IRS would not allow you to deduct your contributions from your taxes — and in fact would tax you on whatever interest the HSA earns, plus hit you with a penalty. In short, HSAs and Tricare do not mix.