What is the definition of a Health Savings Account (HSA) eligible HDHP?

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Multiple Choice

What is the definition of a Health Savings Account (HSA) eligible HDHP?

An HSA-eligible HDHP is a health plan that combines a relatively high deductible with lower monthly premiums and allows you to contribute to a Health Savings Account. The high deductible means you pay more out of pocket before the plan pays, which lowers premium costs, and the HSA lets you save pre-tax dollars to pay for qualified medical expenses. The plan must meet specific HDHP requirements (minimum deductible and maximum out-of-pocket limits) to qualify for HSA eligibility. That combination—higher deductible, lower premiums, and HSA eligibility for tax-free medical spending—is what defines an HSA-eligible HDHP.

An HSA-eligible HDHP is a health plan that combines a relatively high deductible with lower monthly premiums and allows you to contribute to a Health Savings Account. The high deductible means you pay more out of pocket before the plan pays, which lowers premium costs, and the HSA lets you save pre-tax dollars to pay for qualified medical expenses. The plan must meet specific HDHP requirements (minimum deductible and maximum out-of-pocket limits) to qualify for HSA eligibility. That combination—higher deductible, lower premiums, and HSA eligibility for tax-free medical spending—is what defines an HSA-eligible HDHP.

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