Health savings account (HSA) requirements

To set up an HSA, make sure you meet these requirements:

  • You must be covered by a high deductible health plan. Your Priority Health medical plan can be an HMO, POS or PPO as long as it has what qualifies as a "high" deductible. The government's definition of a high-deductible health plan changes each year.
  • You can't be covered by any other medical plan or flexible spending account, unless it's a limited FSA. Your spouse or your children CAN be covered by another health plan.
  • You can't be enrolled in Medicare Parts A, B or D.
  • You can't be claimed as a dependent on anyone else's tax return.
  • Your medical plan must limit your maximum out-of-pocket expenses. Most plans set them lower than the allowed maximum.

Setting up an HSA

  • You set up a health savings account with your bank or financial institution or, if you have insurance through your employer, the one specified by your employer. The bank is responsible for tax reporting on your HSA and sends you statements showing deposits, withdrawals and balance.
  • You'll use checks, a debit card or both to pay for your health care expenses.
  • You, your employer (if applicable) or anyone else can put money into your HSA each year.
  • If you contribute money through payroll deduction, it comes out of your paycheck tax-free.
  • Funds in your HSA may earn tax-free interest, so even if you're not contributing to your account your HSA may continue to grow.
  • Since you own your HSA, you can transfer it to a different bank or credit union if you change employers.
  • If you change health plans and are no longer eligible for an HSA, different rules will apply, but the money remains yours and you can use it for qualified health care expenses.
  • If you have Priority Health insurance through your employer, check with them about your HSA banking options.
  • If you have a MyPriority plan and aren't sure who to use as your banking partner, we partner with a preferred banking partner called HealthEquity. 

HSA contribution limits

 

2021

2020

Change

HSA contribution limit (employer + employee) 

Individual: $3,600

Family: $7,200

Individual: $3,550

Family: $7,100

Individual: +$50 

Family: +$100

HDHP minimum deductibles 

Individual: $1,400

Family: $2,800 but not less than $2,800 per person

Individual: $1,400

Family: $2,800 but not less than $2,800 per person

No change

HDHP maximum out-of-pocket amounts (deductibles, copayments and other amounts, but not premiums)

Individual: $7,000

Family: $14,000 but no more than $8,550 a person

Individual: $6,900

Family: $13,800 but no more than $8,150 a person

Individual: +$100  

Family: +$200  

HHS annual out-of-pocket limit

Individual: $8,550

Family: $17,100 but no more than $8,550 a person

Individual: $8,150

Family: $16,300 but no more than $8,150 per person

Individual: +$400

Family: +$800

HSA catch-up contributions (age 55 or older)1
$1,000 $1,000 No change2


1
Catch-up contributions can be made any time during the year in which the HSA participant turns 55.
2Unlike other limits, the HSA catch-up contribution amount is not indexed; any increase would require legislative change.

We wrote the book on HSAs 

We offer members a digital copy of our HSA Guide, complete with a list of terms to know, information on HSA eligibility, tips on how to manage your HSA and advice about how you can best spend your HSA dollars. The guide is a quick and easy reference to help you understand the basics or brush up on your HSA knowledge – at home or on-the-go.

Download the Health Savings Account Guide