An HSA is also known as a health savings account. This type of account provides for tax-free savings that may be used for health-related expenses. Your HSA may also be used to pay deductibles on your high-deductible health plan. But if you lose your HSA plan or change health insurance providers, you may want to roll your HSA into another HSA.
Process
The process for rolling over your HSA into another HSA is similar to how you would move your IRA money. Open a new HSA with your new insurance company or your bank. Some insurers offer an integrated HSA account with a new health insurance plan while others require you to open a separate account at a bank. Request a transfer request form from the insurance company. Fill out the form and return it to the insurer. The transfer request form allows you to transfer your HSA from one account to another. Once you submit your paperwork, you simply wait for the funds to be transferred.
Significance
The significance of moving your funds from one insurer to another is that your accounts are consolidated. The process is tax-free, and does not violate any of the contribution rules for HSAs.
Benefit
The benefit of rolling over your HSA to another HSA is that you retain control over the money in the account. You also may benefit from increased investment options. HSAs are allowed to invest in any investment that an IRA may invest in. If your HSA at your current insurer offers limited options, a new insurance company may provide you with a broader array of options for you to choose from.
Consideration
Consider keeping your HSA where it is. There are no laws mandating you to move your HSA. IF you are happy with where your HSA account is, you may keep it indefinitely even if your high deductible plan is with another insurer.