#028 – What Is A High Deductible Health Plan And How Can It Help Me?  explains what kind of health insurance plan you can have so you can open and fund a Health Savings Account.  Scott explains the basics so that you can get 100% covered and spend the least amount of money possible.

High Deductible Health Plan Requirements

In order to open and fund a Health Savings Account, the Internal Revenue Service requires that a the insured be enrolled in an eligible High Deductible Health Plan.  The requirements are straight-forward.

Learn more in IRS Publication 969 linked here

*To be an eligible High Deductible Health Plan, the plan must:

1. Have an Individual Deductible no lower than $1,400 ($2,800 for spouse, dependent, family)
2. Have an annual Individual Out Of Pocket Maximum no higher than $7,000 ($14,000 for spouse, dependent, family
3. Deductible must come first – NO COPAYMENT

*Limits apply to 2021 tax year

HSA Rules for 2021

Disconnect between HDHP and HSAs – More Education Needed

The Journal of the American Medical Association commissioned a study on Health Savings Accounts that concluded few US adults enrolled in High Deductible Health Plans are using HSAs to save for health care.  As a result, more education is needed to make HDHPs and HSAs more valuable and effective.

See the JAMA study here

We’re on a mission to get you 100% covered and spend the least amount possible.  Please subscribe and tell your family, friends, co-workers, boss, office manager, HR director or firm administrator to listen to Doxcost on Apple Podcasts or wherever you get your shows.

Next up, we’ll talk about affordability – how to structure your HDHP/HSA to get started.

I appreciate you very much!  See ya next time…..

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