What is a qualified High Deductible Health Plan (HDHP)?

Generally, to contribute to an HSA, you may only have health coverage under a qualified HDHP. A qualified HDHP usually has a higher annual deductible and lower premium than a PPO health insurance plan. Additionally, there are limits on the annual deductible and out-of-pocket maximum that you must pay for covered expenses.

Minimum deductible and maximum out-of-pocket levels required for a plan to be a qualified HDHP are determined by the Internal Revenue Service each year and are adjusted for inflation.