#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:
- Have an Individual Deductible no lower than $1,400 ($2,800 for spouse, dependent, family)
- Have an annual Individual Out Of Pocket Maximum no higher than $7,000 ($14,000 for spouse, dependent, family
- Deductible must come first – NO COPAYMENT
*Limits apply to 2021 tax year
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.
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…..
Clarence Davis, #28 Oakland Raiders – Sea Of Hands – watch here
Like the music on Doxcost? Listen to my pal, Morgan Fingleton, here