Understanding HSA: What Are the Deductibles Required to Qualify for an HSA?

Health Savings Accounts (HSAs) are a tax-advantaged way to save and pay for medical expenses.

To qualify for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP).

The deductibles required to qualify for an HSA are based on the minimum deductible amounts set by the IRS each year.

For 2021, the minimum deductible for an HDHP is $1,400 for individuals and $2,800 for families.

These deductibles refer to the amount you must pay out of pocket for covered medical expenses before your insurance starts to contribute.

Having a high deductible encourages individuals to be more proactive in managing their healthcare costs and also helps keep premiums lower.

Contributions to an HSA are tax deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

Health Savings Accounts (HSAs) offer a wonderful opportunity to manage healthcare expenses while enjoying significant tax advantages. To become eligible for an HSA, you need to be covered by a High Deductible Health Plan (HDHP), which comes with its own set of minimum deductible requirements, set annually by the IRS.