Can You Have an HSA Without a High Deductible? - Exploring Health Savings Accounts

Many people wonder if they can have an HSA without a high deductible. The answer is generally no, as HSAs are typically paired with high-deductible health plans (HDHP). An HSA is a tax-advantaged savings account that lets individuals save and pay for qualified medical expenses. Here's what you need to know:

Key Points:

• HSAs are typically only available with HDHPs.
• HDHPs have higher deductibles and lower premiums.
• Contributions to an HSA are tax-deductible and grow tax-free.
• Funds in an HSA roll over year after year.
• Individuals can use HSA funds for qualified medical expenses.
• If you no longer have an HDHP, you can still use the existing HSA funds for medical expenses but cannot make new contributions.

While many people associate Health Savings Accounts (HSAs) with high-deductible health plans (HDHPs), it's important to clarify the relationship between the two. HSAs are mainly designed to accompany HDHPs, which provide lower premiums in exchange for higher deductibles. This makes HSAs an attractive option for many individuals looking to save on healthcare costs.