What Qualifies a High Deductible Health Plan for HSA? - Explained

When it comes to setting up a Health Savings Account (HSA), one of the key requirements is having a High Deductible Health Plan (HDHP). But what exactly qualifies a plan to be eligible for pairing with an HSA?

Here are the main criteria that a high deductible health plan must meet to be HSA-eligible:

• The plan must have a minimum deductible amount set by the IRS each year.
• The plan must also have a maximum out-of-pocket limit as determined by the IRS.
• The plan cannot provide any benefits for any year until the minimum deductible for that year is met.
• The plan must cover only preventive care before the deductible is met.

These criteria are crucial in determining whether a high deductible health plan qualifies for an HSA. It's important to understand these requirements when selecting a plan to ensure compatibility with an HSA.

To qualify for a Health Savings Account (HSA), you must enroll in a High Deductible Health Plan (HDHP), which has specific eligibility criteria defined by the IRS, making it essential to understand how these plans work.