Health savings accounts (HSA) and high-deductible plans
A tax break for money you set aside for care, paired with a plan that has a higher deductible.
Last checked October 14, 2026 · Written by licensed advisors · Sources are numbered and listed under Notes and sources
What is a high-deductible health plan (HDHP)?
A high-deductible health plan, or HDHP, is a plan with a lower monthly premium and a higher deductible. For 2027 the IRS sets the minimum deductible at $1,750 for one person and $3,500 for a family.1
- Lower monthly premium
- Higher deductible
- Can pair with an HSA
- 2027 minimum deductible: $1,750 or $3,500
How an HSA works
A health savings account is your own savings account for medical costs. Money you put in lowers your taxable income, it grows tax-free, and it comes out tax-free when you spend it on qualified care. Unused money rolls over every year and stays yours if you change jobs or plans.
To put money in, you need an HSA-eligible health plan, called a high-deductible health plan (HDHP), and no other health coverage that disqualifies you, such as Medicare.23
- Put money inLowers your taxable income
- It growsTax-free
- Spend on careTax-free for qualified costs (key step)
- Next yearUnused money rolls over and stays yours
The 2026 and 2027 limits
The IRS sets these every year. Just you / family:41
| 2026 | 2027 | |
|---|---|---|
| Most you can put in an HSA | $4,400 / $8,750 | $4,500 / $9,000 |
| HDHP minimum deductible | $1,700 / $3,400 | $1,750 / $3,500 |
| HDHP out-of-pocket maximum | $8,500 / $17,000 | $8,700 / $17,400 |
New: bronze Marketplace plans now count
Starting in 2026, bronze and catastrophic plans bought through the Marketplace are treated as HSA-eligible. For self-employed people, that means a low-premium bronze plan plus an HSA, with the tax break on what you save for care.56
HDHP or PPO?
An HDHP has a lower monthly premium and a higher deductible, and it lets you use an HSA. A PPO usually costs more each month, has a lower deductible, and lets you see out-of-network doctors at a higher price. The two can overlap: some PPOs are HSA-eligible HDHPs.
An HDHP with an HSA tends to fit people who are mostly healthy and can put money aside. If you expect regular care, a plan with a lower deductible can cost less overall.7
- Lower monthly premium
- Higher deductible
- Lets you use an HSA
- Tends to fit people who are mostly healthy
- Usually higher monthly premium
- Lower deductible
- Out-of-network doctors at a higher price
- Can cost less overall with regular care
Keep in mind
You pay the full price of care until you meet the deductible, which can run to thousands. An HSA helps only if you actually put money in. Supplemental coverage, such as hospital indemnity, pays you a fixed cash amount after a covered hospital stay, which you can put toward the deductible.3
What to do: Ask your tax professional how much to contribute. We can show you which plans in your county are HSA-eligible.
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Obamacare Hotline and/or Medicare Po Polsku are private companies not affiliated with any local, state, or federal government agency. This guide is general information, not tax or legal advice.