HSA-qualified plans are popular with people who want more control over healthcare spending, flexibility in how they save, and long-term tax advantages.
How HSA-Qualified Plans Work
To be HSA-qualified, a plan must meet standards set by the Internal Revenue Service. In practice, that means the plan must be a High-Deductible Health Plan (HDHP) and follow specific coverage rules.
NEW AS OF 2026: If you buy coverage through the Marketplace, all Bronze and Catastrophic plans are now HSA-qualified!
With an HSA-qualified plan:
- You pay lower monthly premiums
- You cover most medical costs out of pocket until you meet your deductible
- You can contribute money to an HSA to help pay those costs
Once enrolled, your HSA works alongside your health insurance, giving you a dedicated, tax-advantaged account for healthcare expenses.
What Makes a Plan HSA-Qualified?
Not every high-deductible plan qualifies. To be HSA-eligible, a plan must:
- Meet the IRS minimum deductible requirements
- Stay under the IRS maximum out-of-pocket limits
- Cover preventive care before the deductible (as required under the Affordable Care Act)
- Avoid covering non-preventive services before the deductible is met
If a plan offers copays for office visits, prescriptions, or other services before you meet the deductible, it generally does not qualify—even if the deductible is high.
What Disqualifies a Plan from Being HSA-Eligible?
A health plan is not HSA-qualified if:
- The deductible is too low
- You’re enrolled in other disqualifying coverage, such as a traditional, low-deductible health insurance plan, a general-purpose Flexible Spending Account (FSA) or Health Reimbursement Arrangement (HRA), or Medicare
- It pays for non-preventive care before the deductible
This is why it’s important to confirm HSA eligibility when you enroll in a new health insurance plan.
How an HSA Works with an HSA-Qualified Plan
When you enroll in an HSA-qualified plan, you can open and fund an HSA in your own name.
HSAs offer three major tax benefits:
- Contributions are tax-deductible or pre-tax through payroll
- Earnings grow tax-free
- Withdrawals for qualified medical expenses are tax-free
Unused funds roll over every year, and the account stays with you if you change jobs or insurance plans. Many people use HSAs not just for current healthcare costs, but as a long-term savings tool for future medical expenses in retirement.
Common Examples of HSA-Qualified Plans
You’ll typically see HSA-qualified plans labeled as:
- HSA-eligible
- HSA-compatible
- HDHP with HSA
These plans are available through:
- Employer-sponsored benefits
- The individual health insurance marketplace
- Some private, off-marketplace insurers
Always verify HSA eligibility before enrolling, especially if you plan to contribute to an HSA.
Who Is an HSA-Qualified Health Plan Best For?
An HSA-qualified plan may be a good fit if you:
- Want lower monthly premiums
- Are comfortable with higher upfront costs
- Don’t expect frequent medical visits
- Have savings to cover the deductible if needed
- Want tax-advantaged healthcare savings
If you have ongoing medical needs or prefer predictable copays, a non-HSA plan may offer better peace of mind.
How LegUp Health Can Help
At LegUp Health, we specialize in helping small businesses and their employees navigate health insurance options, including HDHPs and HSAs. Whether you're exploring plans for yourself or evaluating benefits for your team, we’re here to help you make a smart, confident choice.
Need help deciding if an HSA-qualified plan is right for you? Schedule a free consultation with one of our licensed advisors today.
