HSA Eligibility

Find out what you can use an HSA for.

A Health Savings Account (HSA) is a tax-advantaged savings account designed to cover qualified medical expenses for individuals with high-deductible health plans (HDHPs). Understanding HSA eligibility and its benefits is essential for those considering this healthcare savings tool.

Who is eligible for an HSA?

To qualify for an HSA, you must be enrolled in an HDHP.

The current eligibility requirements and limits for Health Savings Accounts (HSAs) are as such:

  • Minimum Deductibles. For self-only coverage, the minimum deductible is now $1,500, a $100 increase from 2022. For family coverage, the minimum deductible is $3,000, up $200 from 2022.
  • Out-of-Pocket Maximums. For self-only coverage, the out-of-pocket maximum is $7,500, a $450 increase from 2022. For family coverage, it's $15,000, which is $900 more than in 2022.
  • HSA Contribution Limits. The contribution limit for self-only coverage is $3,850.For family coverage, the limit is $7,750.

Additional eligibility criteria includes:

  • Not being covered by non-HDHP insurance
  • Not enrolled in Medicare
  • Not being claimed as a dependent on someone else’s tax return

However, if you're eligible for an HSA and your spouse has one, you can contribute to theirs.

What are the advantages of having an HSA

HSAs offer significant tax benefits. Contributions are tax-deductible, and funds grow tax-free. Additionally, HSA funds can be invested in various options like stocks and mutual funds, allowing potential growth.

Withdrawals for qualified medical expenses, including doctor visits, prescriptions, and hospital stays, are tax-free.

Furthermore, HSAs can also cover dental, vision, chiropractic treatments, and acupuncture, offering a broad scope of healthcare financial support. They provide a safety net for unexpected medical emergencies, offering financial peace of mind.

What are the qualifying medical expenses for an HSA?

Qualified expenses include:

  • Doctor visits
  • Hospital stays
  • Prescriptions
  • Diagnostic tests
  • Certain dental and vision expenses

However, cosmetic procedures, over-the-counter medications without a prescription, and health club dues are generally not eligible.

If unsure, it’s best to consult your HSA provider or a tax professional to confirm expense eligibility.

Choosing an HSA provider

When selecting an HSA provider, consider fees, investment options, and customer service.

Avoid providers with high fees and look for those offering diverse, low-cost investment choices. Reliable customer service is crucial for account management and resolving queries.

Get started with Forma

Looking to offer an HSA as part of your employee benefits package? At Forma, we provide Pre-tax Accounts - including HSAs - for companies worldwide. 

If you’re interested in doing the same for your employees, contact us today

What is HSA eligible?

Find out what items are HSA eligible below.