Tony Novak profile picture
  "AskTony" column archive        


Most Popular

AskTony Archive

This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

New questions

Submit consumer finance questions at and health insurance questions at

Sponsored by: Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Insurance - America's favorite mini-med insurance  with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

Health Savings Account restrictions

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: My health insurance is provided through my wife who is a teacher and gets great benefits including full health and dental insurance. I want to start a Health Savings Account for myself and the other two employees of my small business. How do I do this?

A: Unfortunately the tax laws were specifically designed to prevent a person in your situation (with full health insurance) from using a health savings account. Health Savings Accounts require that you give up your full coverage and elect a high deductible insurance that covers only catastrophic care. A better option in your case is a Health Reimbursement Arrangement (HRA) that is not subject to these tax rules and insurance restrictions. See for more information and setup instructions.


More resources: