Can I Have an HSA If I Don't Have a High Deductible Plan?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

HSA basics and common misconception

Health Savings Accounts (HSAs) have become popular in recent years as a way for individuals to save money for medical expenses tax-free. One common misconception is that you can only have an HSA if you have a high deductible health plan.

However, the answer to the question is no, you cannot have an HSA if you don't have a high deductible health plan. HSAs are specifically tied to high deductible health plans (HDHPs), which are insurance plans that have higher deductibles and out-of-pocket maximums compared to traditional health plans.

HSAs eligibility and 2021 HDHP thresholds

Here are some key points to consider:

• HSAs are only available to individuals who are covered by an HDHP.
• For 2021, an HDHP is defined as a plan with a deductible of at least $1,400 for individuals and $2,800 for families.
• If you have a low deductible health plan, you would not be eligible for an HSA.
• Having an HSA allows you to contribute pre-tax money to use for qualified medical expenses, providing a triple tax advantage.

Why low deductible plans can’t use HSAs

It's important to understand the relationship between HSAs and HDHPs in order to take full advantage of the benefits they offer. If you have a high deductible health plan, opening an HSA can be a smart financial move to help save for future medical expenses.

Many people are curious about Health Savings Accounts (HSAs) and wonder if they can benefit from them without having a high deductible health plan (HDHP). Unfortunately, an HSA is exclusively tied to HDHPs, which are designed to have higher deductibles that allow you to save and benefit from tax advantages.