• HSAs are a type of savings account that lets individuals set aside money on a pre-tax basis to pay for qualified medical expenses, such as deductibles, copayments, coinsurance, and some other expenses, but generally not premiums.
• Individuals may contribute to an HSA only if enrolled in a High Deductible Health Plan (HDHP) — generally a health plan that only covers “preventive services” before the deductible.
• HSA funds roll over year to year if not spent and an HSA may earn interest or other earnings, which are not taxable.

Health Savings Accounts (HSAs) are a type of savings account that lets individuals set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed HSA dollars to pay for deductibles, copayments, coinsurance, and some other expenses, the individual may be able to lower overall health care costs. HSA funds generally may not be used to pay premiums.

High deductible health plan requirement

While individuals can use the funds in an HSA at any time to pay for qualified medical expenses, the individual may contribute to an HSA only if enrolled in a High Deductible Health Plan (HDHP) — generally a health plan (including federal and state Marketplace plans) that only covers “preventive services” before the deductible.

“Preventive services” include, but aren’t limited to, the following:

• Periodic health evaluations, including tests and diagnostic procedures ordered in connection with routine examinations, such as annual physicals.
• Routine prenatal and well-child care.
• Child and adult immunizations.
• Tobacco cessation programs.
• Obesity weight-loss programs.
• Screening services.

For plan year 2026:

• The minimum deductible for a High Deductible Health Plan (HDHP) is: $1,700 for an individual $3,400 for a family.
• If enrolled in an HDHP, an individual can contribute up to $4,400 for self-only coverage or $8,750 for family coverage into a HSA.

For plan year 2027:

• The minimum deductible for a High Deductible Health Plan (HDHP) is: $1,750 for an individual $3,500 for a family.
• If enrolled in an HDHP, an individual can contribute up to $4,500 for self-only coverage or $9,000 for family coverage into a HSA.

HSA funds roll over year to year if not spent. An HSA may earn interest or other earnings, which are not taxable.

Some health insurance companies offer HSAs with HDHPs. Some banks and other financial institutions also offer HSAs.