A savings account with tax advantages, is one of the benefits of an HDHP. In fact, HDHP members are the only ones who can use HSAs. Also, you can’t get an HSA if you have another kind of health insurance.
When HSA-establishing legislation was signed into law in 2003, HDHPs became more prevalent.
The insured person or their employer contribute regularly to their HSA. When deposited or withdrawn, these funds are exempt from federal income taxes.
The thought is to involve them for qualified clinical costs that HDHPs dont cover, for example,
Your plan will cover all of your costs for in-network care once you’ve reached your minimum limit.
Understanding how HDHPs work and how having one will alter how you pay for health care is essential if you want to go this route.
