How does my High Deductible Health Plan (HDHP) Work?
Except for in-network preventive care, which is typically covered at 100%, you must meet an annual deductible before your insurance carrier covers your eligible medical expenses. You can use your HSA money to reimburse yourself for expenses that go toward meeting the deductible. Depending on the amount of money you put into your HSA—and if you use your HSA money wisely— you may not have to dip into your own after-tax funds. On the other hand, if you use up your HSA balance, your remaining deductible obligation comes out of your pocket.
Related Questions
- 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?
- Do I have to be enrolled in a High Deductible Health Plan (HDHP) to contribute into an HSA (Health Savings Account)?
- What qualifies as a High Deductible Health Plan (HDHP)?
