You qualify for a Health Savings Account if you’re covered by a qualifying High Deductible Health Plan, carry no other health coverage that pays before that deductible is met, aren’t enrolled in any part of Medicare, and aren’t claimed as a dependent on someone else’s tax return. Starting January 1, 2026, bronze and catastrophic marketplace-type plans also count as HSA-compatible, which opens the door for a much larger group of people than the old rules allowed.
The High Deductible Health Plan Requirement
The core rule is coverage. You must be enrolled in an HDHP on the first day of any month you want to contribute.1Office of the Law Revision Counsel. 26 USC 223 – Health Savings Accounts A plan only counts as an HDHP if its deductible and out-of-pocket cap fall inside IRS limits, and those limits are adjusted each year.
For 2026, standard HDHPs (plans other than bronze and catastrophic) must meet these thresholds:2Internal Revenue Service. Notice 2026-5 – Expanded Availability of Health Savings Accounts
- Self-only coverage: deductible of at least $1,700, with out-of-pocket costs (excluding premiums) capped at $8,500.
- Family coverage: deductible of at least $3,400, with out-of-pocket costs capped at $17,000.
Premiums don’t count toward the out-of-pocket figure; deductibles and co-payments do. If your plan’s deductible is too low or its out-of-pocket cap is too high, it isn’t an HDHP and you can’t contribute to an HSA while enrolled in it, unless it qualifies under the new bronze and catastrophic rules below.
Bronze and Catastrophic Plans Now Count
The One, Big, Beautiful Bill Act expanded HSA eligibility beginning January 1, 2026. Bronze-level and catastrophic health plans are now treated as HSA-compatible even when they don’t meet the standard HDHP deductible and out-of-pocket thresholds.3Internal Revenue Service. Treasury, IRS Provide Guidance on New Tax Benefits for Health Savings Account Participants Under the One Big Beautiful Bill Many people whose plans previously fell outside the HDHP window are eligible for the first time.
The IRS has said the plan doesn’t have to be bought on a Health Insurance Marketplace exchange. A bronze or catastrophic plan bought directly from an insurer qualifies too, as long as it’s the type of plan that would be available through an exchange.4Internal Revenue Service. One, Big, Beautiful Bill Provisions
The same law made two other permanent changes worth knowing if you’re checking your eligibility. Telehealth and other remote care services can be used before you meet your HDHP deductible without breaking HSA eligibility. And people in certain direct primary care arrangements can contribute to an HSA and use HSA funds to pay the periodic membership fee.4Internal Revenue Service. One, Big, Beautiful Bill Provisions
Other Coverage That Disqualifies You
Having an HDHP isn’t enough on its own. You also can’t be covered by any other health plan that pays benefits before your HDHP deductible is met. That includes a comprehensive plan through a spouse’s employer, any general-purpose insurance that pays from the first dollar, and government coverage like TRICARE.5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans
Workplace benefit accounts can create the same problem. A general-purpose Flexible Spending Account or Health Reimbursement Arrangement reimburses medical expenses before you hit the HDHP deductible, which knocks you out of HSA eligibility. A few variations are compatible:5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans
- Limited-purpose FSA or HRA that only covers dental, vision, or preventive care.
- Post-deductible FSA or HRA that doesn’t reimburse anything until the HDHP minimum annual deductible is met.
- Suspended HRA that pays nothing during the suspension period except preventive care and permitted items like dental and vision.
A general-purpose health FSA with a grace period carrying over from the prior plan year only disqualifies you if there’s money left in it. A zero balance at the end of that prior year means the grace period doesn’t affect your eligibility.5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans
Coverage That’s Fine to Carry Alongside
Some supplemental policies don’t affect HSA eligibility because they don’t duplicate general medical coverage. You can carry:5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans
- Dental and vision coverage.
- Disability insurance.
- Accident insurance.
- Long-term care insurance.
- Workers’ compensation coverage.
- Specific disease or illness policies, such as cancer insurance.
- Fixed-amount hospitalization policies that pay a set dollar amount per day.
A separate prescription drug plan is also fine, as long as it doesn’t provide benefits until the HDHP minimum annual deductible is met.
Medicare Ends Your Ability to Contribute
Enrolling in any part of Medicare (Part A, B, C, or D) drops your HSA contribution limit to zero starting the first month your Medicare coverage begins.5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans You can still spend what’s already in the account tax-free on qualified medical expenses; you just can’t add to it.
A common trap catches people who are 65 or older and drawing Social Security. Once you claim Social Security, you’re automatically enrolled in Medicare Part A, which immediately ends HSA contributions.6Social Security Administration. When to Sign Up for Medicare To keep contributing past 65, you have to delay both Social Security and Medicare.
Retroactive Medicare coverage adds another risk. If you apply late and your enrollment is backdated, any HSA contributions you made during the retroactive period become excess contributions and may trigger penalties.5Internal Revenue Service. Publication 969 (2025), Health Savings Accounts and Other Tax-Favored Health Plans
You Can’t Be Someone Else’s Tax Dependent
If another taxpayer claims you as a dependent, you can’t open or contribute to your own HSA.1Office of the Law Revision Counsel. 26 USC 223 – Health Savings Accounts The rule is about tax dependency, not insurance coverage, and the distinction matters for young adults.
Under the Affordable Care Act, adult children between 19 and 26 can stay on a parent’s HDHP. If you’re covered under a parent’s plan but they don’t claim you as a tax dependent, you can open your own HSA. Sharing insurance doesn’t disqualify you; being claimed on the tax return does.
Most financial institutions also require you to be at least 18 to sign the custodial agreement. There’s no upper age limit for holding an HSA. You can keep the account and spend from it indefinitely, even after Medicare enrollment; the restriction after Medicare applies only to new contributions.
Opening the Account Once You Qualify
If you meet the requirements, opening an HSA means picking a custodian, usually a bank, credit union, or brokerage. Many employers work with a specific HSA provider so payroll deductions and employer contributions can flow directly, but you aren’t required to use them. Independent accounts are widely available, with options for both cash savings and investments.
The custodian will ask for identifying information under federal customer identification rules: name, date of birth, residential address, and a Social Security number or Individual Taxpayer Identification Number.7eCFR. 31 CFR 1020.220 – Customer Identification Program Requirements for Banks You’ll also need proof that you’re enrolled in a qualifying health plan. The carrier name and plan type are usually on your member ID card or in your employer’s benefits portal.
During setup, you’ll name beneficiaries, so have their full names, dates of birth, and Social Security numbers ready. Once you sign the custodial agreement and fund the account, you can start using it for qualified medical expenses. Some custodians require a minimum cash balance, often around $1,000, before you can move money into investments; others let you invest with no minimum at all.