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Health Insurance FAQs

questions and answers about health insurance and employee benefits

What makes a health plan HSA-eligible?

March 27, 2025June 15, 2026

Short answer: A health plan is HSA-eligible if it meets the IRS minimum-deductible and maximum-out-of-pocket limits for a high-deductible health plan and does not provide non-preventive benefits before the deductible is met.


Not every high-deductible health plan qualifies for HSA contributions. To be HSA-eligible, a plan must meet specific IRS requirements that are updated annually.

First, the plan must meet the IRS minimum deductible. For 2026, the deductible must be at least $1,700 for self-only coverage or $3,400 for family coverage.

The plan must also limit total out-of-pocket costs. For 2026, the maximum out-of-pocket limit cannot exceed $8,500 for self-only coverage or $17,000 for family coverage. These limits include deductibles, copayments, and coinsurance, but not premiums.

In addition, the plan generally cannot pay for non-preventive services before the deductible is satisfied. Preventive care may be covered before the deductible without affecting HSA eligibility, but other first-dollar coverage will disqualify the plan.

Note: under the One Big Beautiful Bill Act, beginning in 2026 all individual-market bronze and catastrophic plans are also treated as HSA-eligible, even if they do not otherwise meet these dollar tests.

Finally, the plan must be formally designated as HSA-qualified. A high deductible alone is not enough if the plan fails to meet all IRS criteria.

Sources

  • IRS, Revenue Procedure 2025-19 (2026 HSA and HDHP limits): irs.gov rp-25-19
  • IRS, Health Savings Accounts FAQs: irs.gov HSA FAQs

Content history
Originally published: March 27, 2025
Last reviewed: June 16, 2026

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About HSAs

Health Savings Accounts (HSAs) are tax-advantaged accounts for paying medical expenses and building long-term savings. These FAQs cover who qualifies, contribution limits, eligible expenses, and how HSAs compare to other options.

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