Healthcare

High Deductible Health Plan rules for 2020

To qualify for a high deductible health plan (HDHP) and use a health savings account (HSA), the deductible does not have to be as high as some may think. Even maximum out-of-pocket costs can be managed by most people with a little advance planning using a HSA.

The time to think and plan is before your next open enrollment.

Following are the rules for 2020 as released by the IRS

HSA/HDHP info for Calendar Year 2020

Health Savings Account

Annual contribution limitation. For calendar year 2020, the annual limitation on deductions under § 223(b)(2)(A) for an individual with self-only coverage under a high deductible health plan is $3,550. For calendar year 2020, the annual limitation on deductions under § 223(b)(2)(B) for an individual with family coverage under a high deductible health plan is $7,100.

High deductible health plan.

For calendar year 2020, 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 $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.

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