Is a $7150 Deductible Eligible for an HSA? - Understanding High Deductible Health Plans (HDHP) for HSA

If your deductible is $7150, you may wonder if it is eligible for a Health Savings Account (HSA) under a High Deductible Health Plan (HDHP). An HSA is a tax-advantaged savings account that can help you save for medical expenses.

When it comes to HDHPs and HSAs, there are specific requirements that need to be met:

• The minimum deductible for an HSA-qualified HDHP in 2021 is $1400 for self-only coverage and $2800 for family coverage.
• The maximum out-of-pocket limit for 2021 is $7100 for self-only coverage and $14200 for family coverage.
• Individuals can contribute up to $3550 to an HSA in 2021, and families can contribute up to $7100.

Considering these figures, a $7150 deductible surpasses the minimum deductible requirement for self-only coverage under an HDHP, making it eligible for an HSA.

It's essential to keep in mind that HDHPs and HSAs offer several benefits:

• Tax advantages: Contributions to an HSA are tax-deductible, and withdrawals for qualified medical expenses are tax-free.
• Savings on premiums: HDHPs typically have lower premiums compared to traditional health insurance plans.
• Flexibility: HSAs are portable, meaning you can keep your account even if you change jobs.

Understanding if a $7150 deductible qualifies for an HSA can be a bit confusing, especially as health insurance rules evolve each year. However, if you're considering a Health Savings Account (HSA) and have a deductible of $7150, you're in luck!