1

There are two basic criteria to check if your health insurance qualifies for HSA contributions. (There are details on the IRS website.)

  1. Minimum annual deductible (single person): $1,500
  2. Maximum annual deductible and other out-of-pocket expenses (single person): $7,500

Question 1: I don't understand the second criterium. Can you help?

Question 2: My insurance has an "Individual in-network medical out-of-pocket" of $7,900. Does it meet the second requirement?

unforgettableidSupportsMonica
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Fuzzy
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1 Answers1

2

In order for your health plan to be considered an HSA-eligible HDHP, it needs to have a deductible that is more than the minimum deductible listed, and the out-of-pocket maximum can be no more than the maximum listed. As you noted, those values for 2023 are $1500 and $7500. Because your plan has an out-of-pocket maximum of $7900, it is not an HSA-eligible HDHP.

Even if your out-of-pocket maximum fell within the limits, there are some very specific requirements that a plan must meet in order to be HSA compatible, and these are not always obvious by looking at the numbers in the plan documents. If you aren’t sure, you can ask your health insurance company, and they should be able to tell you whether or not it is HSA compatible. Usually, HSA compatible plans will have the letters “HSA” or “HDHP” right in the name of the plan.

Ben Miller
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