In order for your plan to be considered a qualifying HDHP:
- It must have an annual minimum deductible of $1,350 (2019) and $1,400 (2020) for individuals and $2,700 (2019) and $2,800 (2020) for families.
- The annual out-of-pocket maximum can’t be more than $6,750 (2019) and $6,900 (2020) for individuals and $13,500 (2019) and $13,800 (2020) for families. This definition only applies to the in-network services.
- The health insurance plan must be so that the individual/family pays the first cost of healthcare up to the deductible before any kind of insurance kicks in (preventative care excluded from this definition). This includes prescription drugs as well. The deductible and maximum out-of-pocket expenses are indexed annually for inflation.
Family coverage is determined by having an insurance policy that covers two or more individuals.
Source: Internal Revenue Code 223, Health Savings Accounts.