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

2025 2024 Change
HSA contribution limit
(employer + employee)

Individual: $4,300

Family: $8,550

Individual: $4,150

Family: $8,300

Individual: +$150

Family: +$250
HDHP minimum deductibles

Individual: $1,650

Family: $3,300 but not less than $3,300 per person

Individual: $1,600

Family: $3,200 but not less than $3,200 per person

Individual: +$50

Family: +$100
HDHP maximum out-of-pocket amounts
(deductibles, copayments and other amounts, but not premiums)

Individual: $8,300

Family: $16,600 but no more than $9,200 a person

Individual: $8,050

Family: $16,100 but no more than $9,450 per person

Individual: +$250

Family: +$500
HHS annual out-of-pocket limit

Individual: $9,200

Family: $18,400 but no more than $9,200 per person

Individual: $9,450

Family: $18,900 but no more than $9,450 per person

Individual: -$250

Family: -$500
HSA catch-up contributions
(age 55 or older)1
 $1,000  $1,000 No change2

1Catch-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 HSA guide