14.3.8: High Deductible Plans and Health Savings Accounts
Certain High Deductible Health Plans (HDHPs) are also eligible for Health Savings Accounts (HSAs). These accounts are pre-tax savings accounts that rollover each year and can help someone put aside money to have in case of a medical emergency. By law, the HDHPs must have between certain minimum and maximum deductible and out-of-pocket maximum amounts. For 2024, the minimums were $1600 deductible for a single person, and $3200 for a family, and the maximum amounts were $8,050 and $16100 respectively (IRS, 2024). Often HDHPs will have a deductible that is close to the out-of-pocket maximum, so also having the HSA can help prevent medical debt from accruing on credit cards or causing bankruptcy in the event of a very costly medical bill. HDHPs tend to have lower premiums, and so are popular with younger, healthy folks who tend to not need a lot of doctor’s visits, medications, or procedures (Healthcare.gov, n.d.).