Health Savings Accounts and High Deductible Health Plans

Health savings accounts (HSAs) are a popular type of tax-advantaged medical savings account available to individuals who are enrolled in high deductible health plans (HDHPs). Individuals can use their HSAs to pay for expenses that are covered under the HDHP until their deductible has been met, or they can use their HSAs to pay for qualified medical expenses that are not covered under the HDHP, such as dental or vision expenses.

Due to an HSA’s potential tax savings, federal tax law imposes strict eligibility requirements for HSA contributions. Among other eligibility requirements, an individual must be covered under an HDHP for the months for which contributions are made to his or her HSA. This Legislative Brief summarizes the requirements that must be met for a health plan to qualify as an HDHP.

Click the link below to read the full rules and requirements for HSAs and HDHPs.

Rules for HSAs and High Deductible Health Plans