An HSA-Eligible Plan is a High Deductible Health Plan (HDHP) that is qualified for use with a Health Savings Account. Qualified plans have the following characteristics:
- A minimum deductible for Individual and Family coverage
- A maximum out-of-pocket limit (including deductibles and co-pays) for Individual and Family coverage.
Health Insurance.com easily identifies HSA-Eligible plans with the following icon:
What is an HDHP?
A High Deductible Health Plan (HDHP) is exactly what it sounds like: a health insurance plan that covers an individual or family with a high out-of-pocket deductible. With a higher deductible, the plan will naturally have lower monthly premiums – a key benefit to the Health Savings Account formula.
For 2006, the Internal Revenue Service has set the minimum deductible amount for an HSA-Compatible HDHP at $1,050 for individual plans and $2,100 for family plans.
Ask your health plan representative if your plan qualifies to be an HSA-Compatible HDHP.