Can I Get an HSA with a High Deductible Plan on the Marketplace?

If you're considering enrolling in a high deductible health plan through the Marketplace, you may be wondering if you can also open a Health Savings Account (HSA) to complement your healthcare coverage. The answer is yes, you can get an HSA with a high deductible plan on the Marketplace.

An HSA is a tax-advantaged savings account that allows you to set aside pre-tax money to pay for qualified medical expenses. It is a powerful tool that can help you save on healthcare costs and build a financial safety net for future medical needs.

Here are some key points to consider about getting an HSA with a high deductible plan on the Marketplace:

• High Deductible Health Plans (HDHPs) are eligible for HSAs: To qualify for an HSA, your health plan must meet certain criteria set by the IRS. HDHPs typically have higher deductibles and lower premiums compared to traditional health plans.
• HSA contribution limits: The IRS sets annual limits on how much you can contribute to your HSA. For 2021, the contribution limit for individuals is $3,600 and $7,200 for families.
• Tax benefits: Contributions to your HSA are tax-deductible, and the funds in your account can grow tax-free. Withdrawals for qualified medical expenses are also tax-free.
• Portability: Unlike flexible spending accounts (FSAs), funds in your HSA roll over from year to year, allowing you to accumulate savings for future healthcare needs.

By pairing a high deductible plan with an HSA, you can take control of your healthcare expenses and save for the future while enjoying tax benefits along the way.

If you're contemplating a high deductible health plan through the Marketplace, you're likely asking yourself whether opening a Health Savings Account (HSA) is an option. The good news is, it absolutely is! An HSA can be a perfect financial partner for your HDHP, enhancing your healthcare coverage significantly.