What kind of insurance plan do I need to have an HSA?

Having a Health Savings Account (HSA) can be a great way to save for medical expenses while enjoying tax benefits. When considering opening an HSA, one of the key requirements is having a compatible high-deductible health insurance plan.

Here are the types of insurance plans that are eligible for an HSA:

• High-Deductible Health Plan (HDHP): This is the primary requirement for opening an HSA. An HDHP has a higher deductible than traditional insurance plans but offers lower premiums. It is designed to cover major medical expenses.
• Qualifying HDHP Coverage: To qualify for an HSA, your HDHP must meet certain criteria set by the IRS. This includes the minimum deductible amount and maximum out-of-pocket expenses.

It's important to note that not all health insurance plans are compatible with HSAs. You should carefully review your insurance plan details and consult with a financial advisor to determine if your plan qualifies for an HSA.

To open a Health Savings Account (HSA), it is essential to have a compatible health insurance plan, primarily a High-Deductible Health Plan (HDHP). These plans typically carry a higher deductible, which means you will pay more out of pocket before insurance kicks in, but they often come with lower monthly premiums, making them more budget-friendly.