What is a high-deductible health plan?
According to the IRS, a qualifying high-deductible medical plan has a minimum annual, in-network deductible of $1,100 for single coverage, $2,200 for family coverage, as well as an in-network, out-of-pocket maximum of $5,500 for single coverage and $11,000 for family coverage. Check your employee benefit materials to see if your employer offers a qualifying plan.
The IRS determines the requirements of a qualifying high-deductible health plan www.treas.gov/offices/public-affairs/hsa/. However, if you enrolled through your employer, your employer determined your specific plan design based on those guidelines. Please check your benefit plan materials for your plan design.
A high-deductible health plan contains certain minimum dollar limits on the annual deductible and maximum limits on the out-of-pocket expenses listed under the plan. An individual health care plan would be considered high-deductible if it has an annual deductible of at least $1,150 for 2009 or $1,200 for 2010. A plan for family coverage is considered high-deductible if it has an annual deductible of $2,300 for 2009 and $2,400 for 2010. Out-of-pocket expenses for 2009 may not exceed $5,800 for individual coverage and $11,600 for family coverage. Out of pocket expenses include deductibles, co-payments, etc. For 2010, out of pocket expenses cannot exceed $5,950 for individual or $11,900 for family.
Generally, an HDHP is a health plan that satisfies certain requirements with respect to deductibles and out-of-pocket expenses. Specifically, for self-only coverage, an HDHP has an annual deductible of at least $1150 and annual out-of-pocket expenses not exceeding $5800. For family coverage, an HDHP has an annual deductible of at least $2300 and annual out-of-pocket expenses not exceeding $11600. First dollar coverage for preventive care does not disqualify a plan.
Related Questions
- If a company keeps their current plans started before March 23, 2010, but adds a high-deductible health plan (HDHP), will the current plans maintain grandfathered status?
- Can an individual who is not covered by a high-deductible health plan HDHP for the whole year contribute the maximum annual limit established by the IRS?
- What is an HSA-eligible high-deductible health plan?
