What Qualifies as a High Deductible Health Plan for an HSA 2018?

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HSA eligibility and HDHP criteria basics

Health Savings Accounts (HSAs) are a great way to save for medical expenses while also enjoying tax benefits. However, in order to be eligible for an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). So, what exactly qualifies as a High Deductible Health Plan for an HSA in 2018?

For the year 2018, the IRS defines a High Deductible Health Plan as one that meets certain criteria:

• The plan must have a minimum annual deductible amount set by the IRS.
• The plan must also have a maximum limit on out-of-pocket expenses, including deductibles, co-payments, and other amounts (excluding premiums).
• The plan cannot provide any benefits until the minimum deductible is met, except for preventive care services which are often covered 100%.

Why 2018 HDHP definition matters

It's important to note that these criteria can change from year to year, so be sure to check the latest IRS guidelines for the most up-to-date information on qualifying High Deductible Health Plans.

HSAs are becoming increasingly popular, especially as they allow individuals to prepare for unexpected medical costs while offering plenty of tax advantages. For 2018, understanding what constitutes a High Deductible Health Plan (HDHP) is critical for HSA enrollment.