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Health Savings Accounts(HSAs) And High Deductible Health Plans(HDHPs)

Lisa Nason, Health Savings Plans
The IRS issued the calendar year 2019 inflation-adjusted figures for the annual contribution limits for health savings accounts (HSAs) and the minimum deductible amounts and maximum out-of-pocket expense amounts for high-deductible health plans.
Under Sec. 223, individuals who participate in a high-deductible health plan (HDHP) are permitted a deduction for contributions to HSAs set up to help pay their medical expenses. The contribution deduction limit is subject to an annual inflation adjustment.
For 2019, the annual limit on deductible contributions is $3,500 for individuals with self-only coverage (a $50 increase from 2018) and $7,000 for family coverage (a $100 increase from 2018).

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High Deductible Health Plans

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An high deductible health plan (HDHP)  has a higher annual deductible than typical health plans and a maximum limit on the sum of the annual deductible and out-of-pocket medical expenses that you must pay for covered expenses. Out-of-pocket expenses include copayments and other amounts, but do not includes insurance  premiums (see exception below). It may provide preventive medical care benefits without a deductible or with a deductible less than the minimum annual deductible.

The plan must have a annual deduction and a annual out-of pocket maximum. For family coverage, the terms of the HDHP must deny payments to all family members until the Read more

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