Does My Health Plan Qualify for HSA?

One of the key factors in establishing a Health Savings Account (HSA) is having a qualified high-deductible health plan (HDHP). Not all health plans meet the requirements to be eligible for an HSA, so it's essential to check if your plan qualifies before opening an account.

Here are some points to consider to determine if your health plan qualifies for an HSA:

• Minimum Deductible: Your health plan must have a minimum deductible set by the IRS each year to be considered an HDHP. For 2021, the minimum deductible for self-only coverage is $1,400 and $2,800 for family coverage.
• Maximum Out-of-Pocket Expenses: HDHPs have a limit on the maximum out-of-pocket expenses, which is also determined annually by the IRS. For 2021, the maximum out-of-pocket limit for self-only coverage is $7,000 and $14,000 for family coverage.
• Health Plan Coverage: Your HDHP cannot offer coverage for any non-preventive services before you meet the deductible, except for certain preventive care benefits as outlined by the IRS.

If your health plan meets these criteria, then it likely qualifies as an HDHP, making you eligible to open and contribute to an HSA.

To determine whether your health plan qualifies for a Health Savings Account (HSA), it’s crucial to verify that it aligns with the criteria for a high-deductible health plan (HDHP) as per IRS regulations.