Can you have a high deductible health plan without an HSA?
Asked by: Wilber Becker | Last update: December 20, 2025Score: 4.5/5 (24 votes)
Can you have a HDHP and no HSA?
When you enroll in an HDHP, the health plan determines whether you are eligible for a Health Savings Account (HSA) or a Health Reimbursement Arrangement (HRA) based on the information you provide. Your own HSA voluntary contributions are tax-deductible.
What if my health insurance doesn't offer HSA?
Yes, you can open a health savings account (HSA) even if your employer doesn't offer one. But you can make current-year contributions only if you are covered by an HSA-qualified health plan, also known as a high-deductible health plan (HDHP).
What are the disadvantages of a high deductible health plan?
- You pay all costs for nonpreventive care until you've paid the high deductible.
- Possible unplanned high out-of-pocket costs when you receive covered services.
- Worries about money might influence your health care decisions.
What are the requirements for HDHP?
Per IRS guidelines in 2025, an HDHP is a health insurance plan with a deductible of at least $1,650 if you have an individual plan or a deductible of at least $3,300 if you have a family plan. The deductible is the amount you'll pay out of pocket for medical expenses before your insurance pays anything.
When is a High Deductible Health Plan with an HSA a Good Choice?
Can I get a HDHP on my own?
Yes! You can purchase an HSA-qualified high-deductible health plan (HDHP) in the individual market, which is where people buy coverage if they don't have access to an employer-sponsored plan or a government plan like Medicare or Medicaid.
How does the IRS know if you have a HDHP?
How does the IRS know you have a high deductible health plan? Because your employer reports to the IRS and then gives you proof of insurance attached to your W-2. It used to be a provision of the Obamacare law that you paid a penalty for not having insurance so companies now give you proof of insurance.
Who should avoid a high-deductible health plan?
While these types of plans can be beneficial to those who are relatively healthy, they can be very expensive for those who have chronic conditions or who experience a medical crisis. It's important to carefully consider your expected medical expenses before choosing to participate in a high deductible health care plan.
Is it better to have HDHP or PPO?
HDHPs can be a good form of insurance for the young and healthy — especially if your employer offers you HSA contributions. But for anyone with significant medical expenses, an upcoming surgery, or a serious health condition, a PPO could be a better fit because of the lower deductible.
How much does a doctor visit cost with a high-deductible health plan?
A rough guide is: New Patient Office Visit: $200 - $450 depending on how much time is spent on evaluation and/or how many medical conditions are addressed. Subsequent Office Visits: $75 - $300 depending on how much time is spent on evaluation and/or the number of medical conditions being addressed.
What happens if my company doesn't have an HSA?
While HSAs are often offered as a work benefit, you may be able to open an account if your employer doesn't offer one or if you're self-employed or unemployed. Once you create an HSA, you own it.
What is the 12 month rule for HSA?
It means you must remain eligible for the HSA until December 31 of the following year. The only exceptions are death or disability. If you violate the testing period requirement, your ineligible contributions become taxable income.
What qualifies as a high deductible health plan in 2024?
For calendar year 2024, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,600 for self-only coverage or $3,200 for family coverage, and for which the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not ...
Is it worth having a high deductible health plan?
HDHPs have higher out-of-pocket costs than LDHPs. So, this type of plan is best for healthy people who expect little to no healthcare expenses. If this outlines your scenario, the HDHP's lower premium will likely save you more money than you would spend on medical care.
Who should not get an HSA?
HSAs might not make sense if you have some type of chronic medical condition. In that case, you're probably better served by traditional health plans. HSAs might also not be a good idea if you know you will be needing expensive medical care in the near future.
Is an HSA really worth it?
One of the biggest advantages of an HSA is that it offers a triple tax advantage, which means: Contributions to an HSA are federally tax-deductible, reducing your taxable income. Depending on where you live, you may also get a break on state income taxes. Assets in an HSA can potentially grow federal tax-free.
Do doctors prefer HMO or PPO?
HMO plans might involve more bureaucracy and can limit doctors' ability to practice medicine as they see fit due to stricter guidelines on treatment protocols. So just as with patients, providers who prefer a greater degree of flexibility tend to prefer PPO plans.
Do copays count towards deductible?
No. Copays and coinsurance don't count toward your deductible. Only the amount you pay for health care services (like the medical bill you receive) count toward your plan's deductible.
Why should I choose an HSA over PPO?
HSAs offer a long-term advantage that PPOs cannot: the ability to save for future healthcare expenses. Funds in an HSA roll over each year and can even be invested, similar to a 401(k). This makes an HSA an attractive option for employees who want to build a nest egg for medical costs in retirement.
What is the downside of a high deductible?
The primary disadvantages of a high-deductible health plan include the high out-of-pocket costs and the potential reluctance to seek medical care due to upfront expenses. While HDHPs have lower premiums, individuals may face financial strain if they need medical services before meeting the deductible.
Can I open my own HSA?
If you have a qualified High Deductible Health Plan (HDHP), either through your employer, through your spouse, or one you've purchased on your own, chances are you can open an HSA. Additionally: You cannot be covered by any other non-HSA-compatible health plan, including Medicare Parts A and B.
What is the upside to having a high deductible?
This means you'll pay less each month for insurance and more out-of-pocket when you receive care. The upside? Preventive care is still covered at 100 percent on these plans. Once you hit your deductible, your health plan will start to cover the cost of your other care.
Do all HDHP have an HSA?
An HDHP combined with an HSA enables you to benefit from triple tax advantages. It also provides greater flexibility and customization on how health costs are allocated. But, not all HDHPs are HSA-qualified.
What are the problems with HDHP?
High-deductible health plans (HDHPs) are characterized by higher deductibles and lower monthly premiums compared with a typical health plan. HDHPs may reduce, or delay, needed care, which will ultimately lead to poorer access to care for chronically affected participants.
What are the rules for a high deductible health plan?
Per the 2025 guidance, an HDHP musts have a deductible of at least $1,650 for individual coverage and a deductible of at least $3,300 if you have a family plan. In addition, the plan's out-of-pocket limit must be no higher than $8,300 for an individual plan or $16,600 for a family plan.