A ruling by the Internal Revenue Service is keeping thousands of veterans today from qualifying for health savings accounts (HSA).

Veterans who have used medical benefits through the Department of Veterans Affairs (VA) three months prior to enrollment into a high deductible health plan (HDHP) aren’t eligible to make HSA contributions or receive HSA funds from an employer.

This means while companies comply with the new healthcare reform during open-enrollment season and some change their options to HDHPs and offer their employees HSAs to defray out-of-pocket expenses, employees who use VA services aren’t eligible to participate in an HSA scheme that is made available to their nonveteran co-workers.

Yet not all veterans are excluded from HSAs. If someone who is individual eligible for VA medical benefits hasn’t received such benefits in the preceding three months, he or she may participate in an HSA.

Not so lucky are active and retired servicemen and servicewomen covered under the military health plan TRICARE, or those who use the VA hospital. Such military personnel are prohibited from taking part in an HSA because their coverage options don’t meet the minimum annual deductible requirements of an HDHP, which is $1,500 or $3,000.

More information can be found on the IRS Web site: www.irs.gov.