Health Insurance
Should You Choose a High-Deductible Health Plan and HSA?
HDHPs unlock the triple-tax-advantaged HSA, but only make sense if your expected care fits the math. Here's how to run it.
The HSA is the only triple-tax-advantaged account in the US tax code — but you only get access if you pair it with an HDHP.
2025 HDHP thresholds
Minimum deductible: $1,650 individual / $3,300 family. Maximum out-of-pocket: $8,300 / $16,600. HSA contribution limits: $4,300 / $8,550, plus $1,000 catch-up at 55+.
When the HDHP wins
Below ~$3,000 of expected annual care, the HDHP almost always wins thanks to the premium savings plus HSA tax deduction. Above that, run a full cost-comparison spreadsheet against the PPO option.
Frequently asked questions
Can I keep contributing to my HSA after I switch plans?
No — contributions stop the month you leave HDHP coverage. Existing balances remain yours forever and stay invested.
Related reading
HMO vs. PPO: Which Health Plan Type Costs Less Long-Term?
Network rules, referral requirements, and out-of-pocket math — the real factors that decide which plan wins for your situation.