Is an HSA right for you?

What is a high-deductible health plan and how does it work?

As it name implies, it's a health insurance plan that has a high deductible -- the amount of medical expenses you must pay each year before coverage kicks in.  While the deductible is high with this type of plan, the premium ore regular fee you pay to obtain coverage is typically lower for high-deductible plans than for traditional plans.

High-deductible plans don't start paying until after you've spent at least $1,250 (for an individual) or $2,500 (for a family) of your own money on health care expenses.  You can use your HSA to pay deductible medical expenses, as well as copays and other noncovered health care expenses.

Not all high-deductible plans work the same.  For instance, plans may pay fopr preventave services before the deductible is met.  It is critical to carefully review the plan's coverage details, including the out-of-pocket maximum - the limit on how much you would have to pay out of pocket ofr medical expenses in a year.

The Internal Revenue Service sets the contribution limits for HSAs.  For 2013, the limits are $3,250 for individuals and $6,450 for family coverage.

If you would like more information about HSAs as they apply to you and your family, please contact us at 616.453.6000 or

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CPA Company LLC, 4335 Lake Michigan DR NW, Grand Rapids, MI 49534  616.453.6000