What Type of Health Plan Qualifies for HSA?

An HSA, or Health Savings Account, is a valuable tool for managing healthcare costs while enjoying tax benefits. But not all health plans qualify for an HSA. To be eligible for an HSA, you need to have a High Deductible Health Plan (HDHP) that meets certain criteria:

• The plan must have a minimum deductible amount set by the IRS each year.
• The plan must also have a maximum limit on out-of-pocket expenses, including deductibles, copayments, and coinsurance.
• The HDHP cannot provide any coverage (except for preventive care) before you meet the deductible.

When selecting a health plan that qualifies for an HSA, it's essential to understand these requirements to maximize the benefits of your account.

Understanding Health Savings Accounts (HSAs) can significantly impact your financial wellness. To benefit from an HSA, you must enroll in a High Deductible Health Plan (HDHP) that aligns with the criteria set by the IRS. Remember, the minimum deductible is a key factor to keep in mind for maximizing your tax savings.