The plan needs to be a qualified “high deductible health plan” (HDHP). A qualified HDHP is a health plan that meets the following requirements:

Individual coverage

• Annual deductible: $1,000 Minimum
• Annual out-of-pocket expense maximum: not more than $5,000.

Family coverage

• Annual deductible: $2,000 Minimum
• Annual out-of-pocket expense maximum: not more than $10,000.

General information

• These plans do not offer co-pays for doctor visits, prescription drugs, etc.
• The plan can be a “provider network” plan
• May include a first-dollar benefit or low-deductible benefit for preventive care only
• With regard to family coverage, a plan is only an HDHP if under the terms of the plan no amounts are payable until the cumulative family deductible is met

It is also important to note, an insurance carrier or licensed insurance professional should confirm that the plan in question is actually a qualified plan. Penalties exist for individuals that set-up HSA accounts without participating in a qualified plan of insurance.

Is a qualified plan available in your area? Click here to find out