The number of Americans receiving medical coverage through Health Savings Accounts (HSA) in tandem with a high-deductible health plan (HDHP) has skyrocketed in the last decade. (An HDHP is a health plan that satisfies certain requirements for minimum deductibles and maximum out-of-pocket expenses.) Generally, under Internal Revenue Code Section 223, an HDHP may not provide benefits for any year until the minimum deductible for that year is satisfied. This means that, with limited exception for specifically-defined preventative care coverage, individuals are broadly required to absorb all first dollar medical costs before HDHP coverage can begin.
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