Understanding High Deductible Health Plans for HSA 2016

In 2016, a High Deductible Health Plan (HDHP) is a type of health insurance plan that allows individuals to open a Health Savings Account (HSA) to save for medical expenses tax-free.

Here are some key points to understand about HDHPs for HSA in 2016:

• HDHPs have higher deductibles but lower monthly premiums compared to traditional health insurance plans.
• For 2016, the minimum deductible for an HDHP is $1,300 for individuals and $2,600 for families.
• Individuals covered under an HDHP can contribute to an HSA to save for qualified medical expenses.
• Contributions to an HSA are tax-deductible, grow tax-free, and can be withdrawn tax-free for medical expenses.
• Employers may also contribute to employees' HSAs, providing additional funds for healthcare costs.

Overall, HDHPs for HSA in 2016 offer a way for individuals and families to save for medical expenses while benefiting from lower premiums and tax advantages.

High Deductible Health Plans (HDHPs) not only enable individuals to open a Health Savings Account (HSA) but also empower them to take control of their healthcare expenditures.