What Health Plans Qualify for HSA?

Health Savings Accounts (HSAs) are a valuable tool for saving and paying for medical expenses, but not all health plans are eligible to be used with an HSA. To qualify for an HSA, a health plan must meet certain criteria:

• High Deductible Health Plan (HDHP): The health plan must be a HDHP as defined by the IRS. This means the plan has a minimum deductible and out-of-pocket maximum set by the IRS each year.
• Not Covered by Other Plans: The individual must not be covered by any other health plan that is not an HDHP. This includes being enrolled in Medicare or being claimed as a dependent on someone else's tax return.
• No General Purpose Health Flexible Spending Account (FSA): If the employee has a General Purpose FSA, it will disqualify them from being eligible for an HSA.

Some common health plans that qualify for an HSA include:

• Employer-sponsored HDHPs
• Individual HDHPs
• Catastrophic health plans
• Student health insurance plans

It's important to check with your insurance provider or employer to ensure that your health plan is eligible for use with an HSA. If you have an eligible health plan, opening an HSA can provide tax advantages and help you save for future medical expenses.

To qualify for a Health Savings Account (HSA), your health plan must be classified as a High Deductible Health Plan (HDHP) according to IRS guidelines, which outline the necessary minimum deductible and maximum out-of-pocket expenses for the year.