High Deductible Health Plans (HDHP) and Health Savings Accounts (HSA)

A combination that can help you save money on health expenses in a tax-efficient way

tl;drThis combination can help you save on your premiums, while putting money aside in a tax-advantaged way in case you need more medical care than you're expecting.

What is a High Deductible Health Plan?

High Deductible Health Plans (HDHPs) let you pay a low premium each month, but when you need care, you'll pay out of pocket until you hit a high deductible.

What is a Health Savings Account?

Health Savings Accounts (HSAs) allow you to save tax-free money for health expenses... like those out-of-pocket costs from your HDHP! In order to sign up for an HSA, you'll need to double-check that your plan is eligible.

Combining your HSA and HDHP can be beneficial as you get to save money in your HSA tax-free, then you can use that money to help pay the higher deductible of your HDHP if and when you have medical expenses.

This is a popular option, but not every HDHP also offers an HSA.

Does my HDHP offer an HSA? Do I qualify?

When shopping for your HDHP, make sure your chosen HDHP plan is labeled as HSA-qualified. That way, you'll definitely be eligible for an HSA once you've enrolled.