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HSA-Eligible Plans: What Qualifies and How to Choose

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An HSA-eligible plan is a high deductible health plan (HDHP) that meets IRS minimums for deductible and caps on out-of-pocket costs. For 2026, that means a deductible of at least $1,700 for self-only coverage or $3,400 for family coverage. Out-of-pocket costs can’t exceed $8,500 or $17,000, according to IRS Revenue Procedure 2025-19. Meet those tests and you can open a Health Savings Account and put pre-tax money into it. Miss them, even by a little, and you can’t.

This guide explains what qualifies, what changed this year, how an HSA plan compares with a PPO, and the one rule that catches almost everyone approaching 65: contributions stop when Medicare starts.

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TL;DR

A plan is HSA-eligible only if it meets the IRS deductible and out-of-pocket rules. A low premium or a “high deductible” label doesn’t prove it.
2026 limits: $4,400 for self-only, $8,750 for family, plus $1,000 if you are 55 or older.
Starting in 2026, bronze and catastrophic Marketplace plans can also qualify as HDHPs under federal law changes.
You can’t contribute to an HSA once you have any part of Medicare, but you keep the money already saved.
Always confirm the “HSA-eligible” label on the plan documents before you enroll.

What makes a health plan HSA-eligible
What changed for 2026: bronze and catastrophic plans
How to find an HSA-eligible plan
2026 HSA contribution limits
What is an HSA plan worth? The benefits
HSA plan vs. PPO: which costs less?
The Medicare rule: when HSA contributions must stop
Our perspective
Getting help in Colorado
FAQ
Sources

What makes a health plan HSA-eligible

The IRS has no list of approved insurance companies. It sets tests, and each plan either passes or doesn’t. Three things matter:

Minimum deductible. For 2026, $1,700 for self-only coverage and $3,400 for family coverage.
Maximum out-of-pocket limit. Deductibles, copays and coinsurance (not premiums) can’t exceed $8,500 for self-only or $17,000 for family.
No first-dollar coverage of most care. IRS Publication 969 explains that an HDHP generally can’t pay for non-preventive services until you meet the deductible.

The exception is preventive care. Annual checkups, recommended screenings and certain chronic condition care can be covered before the deductible, so a qualifying plan can still cover them at no cost to you.

The tests apply to the plan itself, not to you. You also have to meet personal conditions: generally no other non-HDHP health coverage, no Medicare, and not being claimed as someone else’s dependent. The IRS spells out who qualifies, including rules for married couples, and it’s worth reading before you open an account.

The family deductible detail

With family coverage, the plan’s deductible structure matters. If a plan has an embedded individual deductible lower than the family minimum, it may fail the test. This is why a plan that looks like an HDHP on a brochure can still be ineligible. Ask the carrier or check the summary of benefits instead of assuming.

What changed for 2026: bronze and catastrophic plans

For years, the Marketplace bronze and catastrophic plans often didn’t fit the HDHP definition. Federal legislation passed in July 2025 (the One Big Beautiful Bill Act) changed that. The IRS’s Notice 2026-5 provides guidance on these changes, which broaden HSA eligibility beginning in 2026.

Two practical points:

Bronze is not the only option. Any metal level (silver, gold or platinum) can be HSA-eligible if it meets the deductible and out-of-pocket tests. A higher premium doesn’t make a plan compatible, and a bronze label doesn’t guarantee it either.
Telehealth and direct primary care. The same law made first-dollar telehealth coverage permanent and says that being in a direct primary care arrangement doesn’t disqualify you from an HSA, as summarized by a tax advisory firm that reviewed the notice.

We’ve written separately about how catastrophic plans gained HSA access if that route fits your situation.

How to find an HSA-eligible plan

On the Marketplace

When you shop on HealthCare.gov, you can filter results by selecting “Eligible for an HSA.” HealthCare.gov explains that not all plans are compatible with an HSA, and the filter keeps you to ones that meet the IRS requirements. In Colorado, Connect for Health Colorado is the state’s own marketplace. Check the plan’s documents for the HSA label there too.

Through an employer

Your summary plan description will say whether the plan is HSA-qualified. If it doesn’t, ask your HR benefits team or the carrier. Be careful if you’re also offered a general-purpose health FSA or an HRA that pays medical expenses. The IRS notes that being covered by one of those generally prevents HSA contributions.

Through a broker

An independent broker can compare HDHPs across several carriers and check the eligibility language for you. We do that for individuals and families in Colorado, at no direct cost to the client, since carriers compensate us when you enroll.

2026 HSA contribution limits

Self-only Family Maximum HSA contribution $4,400 $8,750 Catch-up (age 55 or older) $1,000 $1,000 Minimum HDHP deductible $1,700 $3,400 Maximum out-of-pocket $8,500 $17,000

These figures come from the IRS’s inflation adjustments for 2026. They adjust every year, so check the current numbers before you set up payroll deductions for 2027.

Employer contributions count toward the limit. If your employer puts in $1,000, you can add up to $3,400 on your own with self-only coverage.

The last-month rule

If you become HSA-eligible partway through the year and are covered by an HDHP on December 1, the IRS “last-month rule” can let you contribute the full annual amount. There’s a catch: you must stay eligible through a testing period covering the next 12 months. If you don’t, the extra contributions can become taxable and may carry a penalty. Read the IRS explanation before relying on it.

Timeline of the HSA last-month rule

What is an HSA plan worth? The benefits

The appeal is a tax advantage on three fronts. According to HealthCare.gov, you set aside pre-tax money for qualified medical expenses, the balance rolls over year to year, and it can earn interest or investment returns tax-free. That’s why people describe an HSA as both a health fund and a long-term savings tool.

In practice, the benefits look like this:

Lower premiums, usually. HDHPs tend to cost less per month than richer plans, though the exact gap depends on the carrier and your area.
Money that stays yours. Unlike a typical FSA, the HSA balance is yours when you change jobs or retire.
Wide spending range. Deductibles, copays and coinsurance qualify. Many people are surprised by what else does, from dental work to vision care. If you’re curious about borderline items, a guide on whether cosmetic dental products like whitening are HSA eligible shows how to think about eligibility questions, though you should confirm any specific purchase against IRS rules.

The tradeoff is real. You pay the full negotiated price of most non-preventive care until the deductible is met. If you have a gap between your deductible and your savings, a bad year hurts.

HSA plan vs. PPO: which costs less?

This is the question most readers actually have. The answer depends on how much care you expect to use.

Factor HSA-eligible HDHP Typical PPO Monthly premium Often lower Often higher Deductible At least $1,700 / $3,400 (2026) Often lower Tax-advantaged account Yes, HSA No Doctor visits before deductible Mostly full price, except preventive care Often copays Best for Healthy people, savers, those who can cover the deductible Frequent users of care, predictable copays

A rough way to decide: add the full year of premiums to the plan’s out-of-pocket maximum. That’s your worst case. Then add premiums plus the care you realistically expect. Compare both numbers across plans, and subtract the tax savings from HSA contributions. Our article HDHP vs PPO: HSA limits and three scenarios walks through three worked cases.

An HDHP usually suits you when:

You’re generally healthy and use mostly preventive care.
You can fund the HSA to cover at least part of the deductible.
You’re in a higher tax bracket, where the deduction is worth more.

A PPO may suit you when you have ongoing prescriptions, a planned surgery, a pregnancy, or you simply can’t absorb a $3,400 bill without stress.

The Medicare rule: when HSA contributions must stop

This is the part we see trip up people near 65 more than any other. Medicare & You states that you aren’t eligible to make contributions to an HSA once you have Medicare. It suggests making your last contribution the month before your Part A coverage begins, which can help you avoid a tax penalty.

Two details matter:

Part A can be retroactive. If you sign up for Medicare after your 65th birthday month, Part A can go back up to six months. That backdating can make earlier HSA contributions improper. Medicare’s page on working past 65 covers how employer coverage and sign-up timing interact.
Both sides count. Your employer’s contributions count too, so tell your payroll team when you plan to enroll.

You don’t lose what you’ve saved. According to the same Medicare guide, you can keep using your existing HSA funds tax-free for qualified medical expenses. That includes Medicare Part B, Part D and Medicare Advantage premiums, but not Medicare Supplement (Medigap) premiums.

A simple timeline for people approaching 65

About six months before you plan to apply for Medicare or Social Security, stop HSA contributions if you might be backdated.
Confirm your employer plan’s status and whether it’s creditable coverage. Our guide to Medicare and working past 65 lays this out.
Learn the Medicare enrollment periods so you don’t miss your window.
Review the cost of delay in our piece on Medicare late enrollment penalties.
Spend your HSA balance on qualified costs in retirement, including premiums for Part B, Part D and Medicare Advantage.

If you want to keep working and keep your HSA, delaying Part A and B can be possible, but it has consequences for Social Security and penalties if your employer coverage doesn’t qualify. That’s the kind of decision worth a conversation before you act.

Our perspective

Most of the HSA questions we hear aren’t about the HSA. They’re about timing. A 63-year-old maxing out contributions through an employer plan, not realizing Medicare is six months from backdating them, is far more common than someone who picked the wrong HDHP.

Here’s how we think about it with Colorado clients:

Eligibility is a checklist, not a feeling. We read the plan documents and confirm the HSA label before recommending anything.
The cheapest premium is rarely the cheapest year. We run the worst-case number alongside the expected one.
An HSA is a long game. If you can pay current medical bills out of pocket and let the balance grow, it works like a second retirement account. If you can’t, we say so.
Help doesn’t end at enrollment. We stay available for claims questions and annual reviews, because plans and limits change every year.

As independent, licensed brokers, we aren’t tied to one carrier, so the comparison is about your health needs and budget.

— Zach

Getting help in Colorado

If you’re under 65 and weighing an HDHP against a PPO, or you’re a few months from 65 and unsure how your HSA fits with Medicare, we can walk through it with you. Our licensed brokers compare plans across carriers, handle enrollment, and stay with you for claims and yearly reviews. See our full list of services, or if Medicare is the next step, start with Medicare Part A and B enrollment help in Castle Pines.

FAQ

Which insurance plans are HSA-eligible?

Any plan that meets the IRS definition of an HDHP: a minimum deductible of $1,700 (self-only) or $3,400 (family) for 2026, and out-of-pocket limits no higher than $8,500 or $17,000. Employer plans, individual plans and, since 2026, qualifying bronze and catastrophic Marketplace plans can all fit. Check the plan documents for the HSA label.

Can I keep an HSA after I enroll in Medicare?

Yes, but you can’t add money. Contributions must stop once any part of Medicare begins, ideally the month before Part A starts. You can keep spending the existing balance on qualified expenses, including Part B and Part D premiums.

Is a bronze plan always HSA-eligible?

No. Eligibility depends on meeting the IRS deductible and out-of-pocket tests, not the metal level. Silver, gold and platinum plans can qualify too. Use the “Eligible for an HSA” filter on HealthCare.gov and confirm in the plan documents.

Is an HSA plan better than a PPO?

It depends on how much care you use and how much you can set aside. An HDHP often has lower premiums and a tax-advantaged account, while a PPO tends to give more predictable copays. Compare each plan’s yearly premiums plus its out-of-pocket maximum before deciding.