What qualifies as a high deductible health insurance plan?
What is a Health Savings Account† (HSA)?
An HSA is an advantaged savings account that is used in combination with a high deductible health insurance plan. The money in the account helps pay the deductible as well as any other qualified medical expenses—including coinsurance—that may not be covered by the plan once the deductible has been met.
An HSA is similar to an individual retirement account (IRA), because it too can be invested in a variety of investment vehicles, while accumulating tax-free interest. The advantage of an HSA compared to an IRA is that the funds from the HSA are generally not taxed when they are withdrawn to pay for qualified medical expenses.
The following requirements must be met for 2007:
Minimum deductible: $1,100 individual; $2,200 family
Out-of-pocket maximum (includes deductible): $5,500 individual; $11,000 family
No services paid for prior to meeting deductible (except for preventive care)
No deductible required for preventive care
For family coverage: family deductible must be met before any reimbursement can be made
No prescription drug copayments
Higher limits allowed for non-participating provider services
