Are the contributions made to the Healthy Indiana Plan POWER accounts considered premiums? And are the contributions tax-deductible like traditional Health Savings Accounts (HSAs)?

Published 07/06/2007 12:49 PM   |    Updated 11/05/2014 04:07 PM

Are the contributions made to the Healthy Indiana Plan POWER accounts considered premiums?  And are the contributions tax-deductible like traditional Health Savings Accounts (HSAs)?

No. Unlike a premium, participants can potentially recover the funds that they contribute if they manage their POWER account wisely. The POWER account, while modeled in the spirit of an HSA, is not an HSA, and therefore is not tax-deductible.  Most persons who qualify for this plan do not earn enough to qualify for the tax deductions that are typically associated with HSAs.

 

For more information, please contact us by filling out the FSSA Contact Form (please specify "HIP Inquiries" for how your inquiry should be directed) or call toll free: 877-GET-HIP-9.

Healthy Indiana Plan

 

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