In order to use a Health Savings Account (HSA), one of the requirements is that you have a High Deductible Health Plan (HDHP) in force.  A HDHP is simply a special sort of medical insurance policy with some very particular components.  Specifically, those components are: a) a higher annual deductible than most typical health plans; and b) a maximum limit on the sum of the annual deductible and out-of-pocket (OOP) medical expenses that you pay for covered medical expenses.

HDHP Limits

First of all, the limits for a HDHP are as shown in the following table (2009 figures):

Coverage Type	Minimum Annual Deductible	Maximum Annual Deductible Plus OOP
Individual	$1,150	$5,800
Family	$2,300	$11,600

**It should be noted that the Maximum Annual Deductible plus OOP only includes amounts paid within the defined “network” of providers authorized by the plan.  Any expenses outside that network will not be considered within this Maximum Annual amount.

In addition, some family plans have a separate Individual deductible and Family deductible.  When you meet the amount for the Individual deductible for one family member, you no longer have to meet the higher Family deductible for that year. If either the Family deductible or the Individual deductible are less than the minimums for that tax year, the plan does not qualify as a HDHP.

Photo by Andrew Aliferis

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