What is an HDHP?
An HDHP is a plan with an annual deductible of at least $1,100 for single (self-only) coverage or $2,200 for family coverage. These amounts are subject to cost-of-living adjustments (COLAs). • Are There Other Requirements for the HDHP? Yes. For HSA purposes, the HDHP must limit out-of-pocket expenses. For 2009, the maximum out-of-pocket expenses, which include money applied to your deductible and your coinsurance for covered charges, must be no more than $5,800 for single coverage and no more than $11,600 for family coverage. These amounts are subject to COLAs. • How is an HSA Established? An HSA is established by you which is similar to establishing an IRA�with a qualified trustee or custodian. • Who Can Contribute to My HSA? If you meet the eligibility requirements for an HSA, you, your employer, your family members and any other person (including non-individuals) may contribute to your HSA. This is true whether you are self-employed or unemployed. • How Much Can I Contribute to My
A high-deductible health plan (HDHP) is a health plan that, when combined with an HSA, provides insurance coverage and a tax-advantaged way to help save for future medical expenses. The Aetna HealthFund HDHP with HSA gives you greater flexibility and discretion over how you use your health care dollars. HDHPs have a higher annual deductible than traditional health plans. To be eligible to fund an HSA, you must be covered by an HDHP; you cannot have other health insurance coverage (including a spouse’s plan) that is NOT a high-deductible health plan; and you may not contribute any more money to an HSA once you are enrolled in Medicare. See question 3 below for more information.
A High-Deductible Health Plan, or HDHP, is a health insurance plan with specific rules for coverage set by the IRS that meets the requirements of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to have a specified deductible. A qualifying HDHP has a minimum annual deductible and out-of-pocket maximums for individuals and families, a combined medical and pharmaceutical deductible, and an aggregate deductible. An HDHP enables consumers to enroll in a Health Savings Account (HSA).
• HDHP is a High Deductible Heath Plan. It is an HSA eligible health insurance plan that has a high deductible/out of pocket expense that must be met before coverage starts. • To qualify as an HDHP the minimum deductible must be at least $1,150 for an individual and $2,300 for a family coverage. • There is also a maximum deductible/out of pocket expense cap of $5,800 for an individual and $11,600 for a family.
A High Deductible Health Plan (HDHP) is exactly what it sounds like: a health insurance plan that covers an individual or family with a high out-of-pocket deductible. With a higher deductible, the plan will naturally have lower monthly premiums – a key benefit to the Health Savings Account formula. For 2006, the Internal Revenue Service has set the minimum deductible amount for an HSA-Compatible HDHP at $1,050 for individual plans and $2,100 for family plans. Ask your health plan representative if your plan qualifies to be an HSA-Compatible HDHP.
