What Qualifies a High Deductible Health Plan for HSA?

High deductible health plans (HDHPs) are an essential component of Health Savings Accounts (HSAs), providing individuals with the opportunity to save for medical expenses tax-free. To qualify as an HDHP for HSA eligibility, a health insurance plan must meet specific criteria:

• The plan must have a minimum deductible amount set by the IRS annually.
• The plan must cap out-of-pocket expenses, including deductibles and copayments.
• The plan cannot cover any non-preventive medical services before the deductible is met.
• The plan may offer preventive care without a deductible or with minimal cost sharing.

By meeting these criteria, an HDHP becomes eligible for HSA contributions, allowing individuals to set aside funds for current and future medical needs.

Many individuals are exploring the benefits of High Deductible Health Plans (HDHPs) as a way to qualify for Health Savings Accounts (HSAs). These plans are designed not only to provide affordable insurance options but also to enable tax-free savings for future healthcare expenses.