Minimum Deductibles for HSA-Qualified Health Insurance
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Minimum Deductibles for HSA-Qualified Health Insurance
In order for a health insurance policy to be "HSA-qualified," the policy must have an annual deductible that is at least $1,650 for individuals with self-only coverage or $3,300 for individuals with family coverage beginning in 2025. The annual deductible also cannot exceed $8,300 for self-only coverage or $16,600 for family coverage beginning in 2025. If your policy has an annual deductible below or above these amounts for 2025, it is not an HSA-qualified policy.
Things To Know
- Your policy must meet a certain deductible amount in order to be HSA-qualified.
- Policies offering family coverage usually apply the deductible to the entire family.
How the deductible applies
Policies offering "family coverage" usually apply the deductible to the entire family. For example, this means that if your family policy has a deductible of $4,000, the deductible applies to all medical expenses incurred by any of your family members combined. This means that one family member could incur all $4,000 of medical expenses before the deductible is satisfied. However, some policies may apply separate deductibles to individual family members.
Buyer’s Guide
Make sure your policy has a deductible that meets the requirements, especially as the required amounts change over time. The level of deductible you choose will impact your premium and savings opportunity. Higher deductibles can lower your premium significantly and provide savings that you can put into your HSA account each year. However, you may not want to choose policies with the highest deductibles, at least initially, because the amount you can contribute to your HSA account to cover the deductible is limited each year. Over time, you may accumulate enough funds in your HSA to lessen the impact of higher deductibles. In addition, individuals age 55 or older can make additional contributions to their HSA accounts each year, which may help you accept policies with higher deductibles.