How to Tell if My Health Plan is HSA Eligible?

When it comes to managing your healthcare expenses, a Health Savings Account (HSA) can be a valuable tool. However, not all health plans are eligible for an HSA. Here are some key things to look for to determine if your health plan qualifies for an HSA:

1. High Deductible Health Plan (HDHP):

• Check if your health plan is classified as an HDHP by the IRS. To be HSA-eligible, your plan must meet certain deductible and out-of-pocket maximum limits set by the IRS.

2. Minimum Deductible Requirements:

• For 2021, the minimum deductible for an individual HDHP is $1,400 and for a family HDHP is $2,800. Make sure your plan meets these minimum deductible requirements.

3. Maximum Out-of-Pocket Limits:

• Ensure that your plan's out-of-pocket maximum does not exceed the IRS limits. For 2021, the maximum out-of-pocket limit for an individual is $7,000 and for a family is $14,000.

4. HSA Compatibility:

• Some health plans may have certain restrictions or coverages that make them incompatible with HSAs. Confirm with your insurance provider or HR department that your plan is HSA-compatible.

By checking these criteria, you can determine if your health plan is HSA-eligible and take advantage of the benefits that come with an HSA.

Determining whether your health plan is eligible for a Health Savings Account (HSA) is crucial for maximizing your healthcare savings. Start by ensuring your plan is categorized as a High Deductible Health Plan (HDHP) as per IRS guidelines.