What is an HSA-qualified High Deductible Health Plan (HDHP)?
An HSA-qualified HDHP is a health plan that meets the requirements as specified and published annually by the U.S. Treasury Department.
- The plan must have a minimum annual deductible. The IRS specifies a minimum deductible for individuals with self-only coverage and individuals with family coverage (more than one covered under the HDHP). All medical and prescription expenses must be subject to the annual deductible, with the exception of preventive care which may be covered at 100 percent with no deductible.
- The annual out-of-pocket expenses—such as deductibles, co-payments and other expenses paid for by the HDHP participant may not exceed the IRS specified out-of-pocket maximums. The out-of-pocket limit does not include premiums or amounts incurred for non-covered benefits (such as amounts in excess of usual, customary and reasonable amounts, and financial penalties).