Find out if an HSA Health Insurance Plan is right for you
You may be wondering what a Health Savings Account (HSA) or HSA health insurance is. A health savings account is an IRA-like account funded with pretax dollars that grows tax-deferred. The HSA assets may serve a dual purpose:
- Tax-free and penalty-free distributions can be taken to pay for medical expenses, and
- Penalty-free (but not tax-free) distributions can be taken for any reason starting at age 65.
In other words, HSA assets not used for medical expenses become retirement assets.
Who Is Eligible For Health Savings Accounts?
Any individual with a high deductible health insurance plan (HDHP) may establish an HSA. An individual must obtain HDHP coverage before opening an HSA. An individual must generally not be covered by any health plan that is not an HDHP. An individual must not be enrolled in Medicare when opening an HSA.
An individual must not be claimed as a dependent on another person’s tax return, even if the other person does not actually claim the deduction.
What Is A High Deductible Health Plan?
The requirements for a 2024 health plan to be considered “high deductible” vary, depending on whether the covered individual receives single or family health insurance coverage.
- For single coverage, the policy must have a minimum deductible of $1,600 and a maximum out-of-pocket cost of $8,050.
- For family coverage, the policy must have a minimum deductible of $3,200 and a maximum out-of-pocket cost of $16,100.
Advantages to having a Health Savings Account in conjunction with your health insurance plan include:
- Ability to pay for medical bills that have not met your deductible
- Lower Premium
Each year, there is a maximum contribution amount that you and/or your employer may contribute in total. These contributions are pretax and grow tax deferred.
|
2024 |
Single Plan |
Family Plan |
|
Contribution Limit |
$4,150 |
$8,300 |
|
Catch-Up Contribution (55 or older) |
$1,000 |
$1,000 |
|
2025 |
Single Plan |
Family Plan |
|
Contribution Limit |
$4,300 |
$8,550 |
|
Catch-Up Contribution (55 or older) |
$1,000 |
$1,000 |
Interested in learning more about HSA eligible plans? Call to speak with one of our insurance representatives today, (800) 205-7203.