What Makes Health Insurance HSA Eligible?

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HSA-eligible plan requirements and restrictions

Health insurance plans that are eligible for a Health Savings Account (HSA) must meet specific requirements to qualify. To be considered HSA eligible, a health insurance plan must meet the following criteria:

Criteria recap for HSA-eligibility

• The plan must have a high deductible, which is defined by the IRS each year. For 2021, the minimum deductible for an HSA-eligible plan is $1,400 for individuals and $2,800 for families.
• The plan must also have a maximum limit on out-of-pocket expenses, which includes deductibles, copayments, and coinsurance. For 2021, the maximum out-of-pocket limit for HSA-eligible plans is $7,000 for individuals and $14,000 for families.
• The plan cannot cover any non-preventive health services before the deductible is met, with some exceptions such as preventive care, certain screenings, and preventive medications.
• The plan cannot be a flexible spending account (FSA) or a health reimbursement arrangement (HRA).

By meeting these criteria, a health insurance plan can be considered HSA eligible, allowing individuals to open and contribute to a Health Savings Account to help cover medical expenses.

Health insurance plans must meet certain criteria to qualify for a Health Savings Account (HSA). For a plan to be HSA-eligible, it needs to embrace a high deductible, which the IRS defines annually. As of 2021, this means a minimum deductible of $1,400 for individuals and $2,800 for families. Additionally, there are set limits on out-of-pocket expenses linked with these plans; in 2021, these caps are $7,000 for individuals and $14,000 for families.