What is a High Deductible
Health Plan (HDHP)?
It is a health
insurance policy with a minimum deductible*of:
$1,150
for self only coverage or $2,300 for family coverage, and
an annual out-of pocket* (including deductibles &
co-pays), which cannot exceed $5,800 (self-only coverage) and
$11,600
(family coverage)
*
The annual dollar limits are indexed for
inflation. Those listed above are for 2009.
Who Is Eligible?
Just about
anyone, provided they meet the following criteria. Specifically, you must
be enrolled in an High Deductible Health Plan with an insurance company
which offers policies compatible with HSA's.
And you must not be:
covered by other insurance (with some exceptions), nor
enrolled in Medicare,
military health care coverage, nor
claimed as a dependent.
Surprisingly, there are no income limits on the contributor, nor any
earned income requirement. There are limits however on how much you may pay into
your HSA fund each year. According to the US Treasury Website, Revenue
Procedure 2008-09 new annual contribution levels are:
For 2009, the maximum annual contribution for self-only coverage is $3,000
and for family coverage it is $5,950,
For 2009 and all years going forward, there is a $1,000 "catch up" provision
for those of us 55 and older,
If you are eligible for an HSA, you are allowed the full contribution (plus
the catch up) on the first day of the last month of the taxable year.
