What Criteria Makes a Health Plan HSA Qualified?

When it comes to selecting a health plan that is Health Savings Account (HSA) qualified, there are specific criteria that need to be met to ensure eligibility. The main factors that make a health plan HSA qualified include:

• High Deductible Health Plan (HDHP): The health plan must be categorized as an HDHP by the IRS, meaning it has a minimum deductible amount set by the IRS each year.
• Minimum Deductible Requirements: For 2021, the minimum deductible for an individual HSA-qualified HDHP is $1,400 and for a family, it is $2,800.
• Maximum Out-of-Pocket Limits: HSA-qualified HDHPs also have maximum out-of-pocket limits set by the IRS each year. For 2021, the maximum out-of-pocket limit for an individual is $7,000 and for a family, it is $14,000.
• Preventive Care: The health plan must cover certain preventive care services without requiring cost-sharing from the policyholder.

These criteria are essential for a health plan to be considered HSA qualified, allowing individuals to contribute to their HSA and enjoy tax advantages. Understanding these requirements is crucial when selecting a health plan for HSA eligibility.

To select a health plan that qualifies for a Health Savings Account (HSA), it's crucial to understand the specific criteria outlined by the IRS. The primary requirement is that the health plan must be classified as a High Deductible Health Plan (HDHP). This means it needs to adhere to certain deductible amounts each year.