What is a High Deductible HSA?

A High Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA) is a popular choice for individuals looking to save on healthcare costs while enjoying tax benefits.

Here's what you need to know about a High Deductible HSA:

1. High Deductible Health Plan (HDHP)

• Requires higher out-of-pocket costs before insurance coverage kicks in.
• Lower monthly premiums compared to traditional health plans.
• Typically offers coverage for preventive care before meeting the deductible.

2. Health Savings Account (HSA)

• A tax-advantaged savings account paired with an HDHP to cover eligible medical expenses.
• Contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.
• Funds roll over year after year, allowing for long-term savings.

When you combine an HDHP with an HSA, you have the flexibility to use the account to pay for current medical expenses or save for future healthcare needs.

A High Deductible Health Plan (HDHP) paired with a Health Savings Account (HSA) is not only a smart financial strategy for healthcare costs, but it also opens the door to numerous tax advantages. Understanding both elements is essential for maximizing your benefits.