Health Savings Account
One way to manage your health care expenses is by enrolling in a High Deductible Health Plan (HDHP) in combination with opening a Health Savings Account. A Health Savings Account, or HSA, is a unique, tax-advantaged account that can be used to pay for current or future healthcare expenses. When combined with a HDHP, it offers savings and tax advantages that a traditional health plan can't duplicate. With an HSA, insurers will have:
- A tax-advantaged savings account they can use to pay for eligible medical expenses including deductibles, co-insurances, prescriptions, vision expenses, and dental care.
- Access to unused funds which will roll over year to year. There's no "use it or lose it" penalty.
- Additional retirement savings. After age 65, funds can be withdrawn for any purpose without penalty, but may be subject to income tax if not used for IRS-qualified medical expenses.
- Flexibility to use your HSA to pay for the qualified medical expenses of anyone you claim on your taxes, even if you're only enrolled with single coverage. This is a great way to plan for unexpected medical expenses for the entire family.
Contribution Limits
A Health Savings Account can be utilized in both individual and group insurance markets when paired with a High Deductible Health Plan. See below guidelines:
Contribution and Out-of-Pocket Limits for HSAs and HDHPs
| 2024 | 2023 | Change | |
|---|---|---|---|
| HSA Contribution Limit (Employer + Employee) | Self-Only: $4,150 Family: $8,300 | Self-Only: $3,850 Family: $7,750 | Self-only: + $300 Family: + $550 |
| HSA Catch-Up Contributions Age 55 or Older | $1,000 | $1,000 | No Change |
| HDHP Minimum Deductibles | Self-Only: $1,600 Family: $3,200 | Self-Only: $1,500 Family: $3,000 | Self-only: + $100 Family: + $200 |
| HDHP Maximum Out-of-Pocket Amounts (Deductibles, co-payments, and other amounts, but not premiums.) | Self-Only: $8,050 Family: $16,100 | Self-Only: $7,500 Family: $15,000 | Self-Only: + $550 Family: + $1,100 |
