If you’re considering opening an HSA or want to ensure you remain HSA-eligible in 2025, it’s important to understand the latest criteria.
Health Savings Accounts (HSAs) provide a powerful way to manage healthcare expenses while maximizing tax benefits. However, not everyone meets the HSA eligibility requirements to contribute.
In this guide, we will break down the 2025 HSA eligibility rules and explain how HSA MEC plans can help individuals with health sharing plans qualify.
What is a Health Savings Account?
A Health Savings Account is a tax-advantaged account designed for individuals with high-deductible health plans (HDHPs).
They offer a triple tax benefit unmatched by any other savings vehicle in the tax code:
- Pre-tax contributions
- Tax-deferred growth
- Tax-free distributions for qualified healthcare expenses
Pound for pound, the HSA is arguably the best savings and wealth accumulation tool available to individual taxpayers – especially those in higher income tax brackets. Here’s how you can make yourself eligible to contribute to one.
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HSA Eligibility Criteria
To contribute to a Health Savings Account (HSA), you must meet specific eligibility requirements. Here are the key factors that determine whether you qualify:
- You must be covered by an HSA-eligible health plan: Only individuals enrolled in a high-deductible health plan can contribute to an HSA. Other types of health coverage, including Medicare, TRICARE, or TRICARE For Life, make you ineligible. You also cannot be covered under a spouse’s plan unless it is HSA-eligible.
- You cannot have other disqualifying health coverage: If you have used VA medical benefits within the last three months, you may not be eligible unless you have a service-connected disability or have only accessed preventative services.
- You cannot be claimed as a dependent: If someone else claims you as a dependent on their tax return, you are not eligible to contribute to an HSA.
- You must not have disqualifying medical savings accounts: Participation in a Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA) may disqualify you from contributing to an HSA unless you have a limited-purpose FSA that covers only dental and vision expenses.
What is the Maximum Amount I can Contribute to an HSA?
As of 2025, the maximum contribution limits for Health Savings Accounts (HSAs) have increased.
Individuals with self-only coverage can contribute up to $4,300, while those with family coverage can contribute up to $8,550. Additionally, individuals aged 55 or older can make a catch-up contribution of $1,000.
These contributions offer significant tax advantages, including pre-tax contributions, tax-deferred growth, and tax-free distributions for qualified healthcare expenses. Maximizing your HSA contributions can be a strategic way to manage healthcare costs and grow your savings.
Are There Income Limitations?
Unlike Roth IRAs, there are no income limitations or thresholds, you can contribute the maximum amount regardless of your income.
Understanding High-Deductible Health Plans (HDHPs)
What Qualifies as an HDHP?
An HDHP is defined not only by its higher deductibles but also by specific minimum deductible and maximum out-of-pocket expense limits. For 2025, the IRS has set the following parameters:
- Minimum Annual Deductible:
- Self-Only Coverage: $1,650
- Family Coverage: $3,300
- Maximum Out-of-Pocket Expenses (includes deductibles, co-payments, and other amounts, but not premiums):
- Self-Only Coverage: $8,300
- Family Coverage: $16,600
These figures are outlined in the IRS Revenue Procedure 2024-25.
Your plan documents will tell you if your health insurance plan is HSA-eligible. If you’re not sure, contact a Personal Benefits Manager.
HDHPs can lower your monthly premium costs. Combined with an HSA, they offer a way to save for medical expenses while enjoying tax benefits.
Health Sharing Members Can Now Be HSA Eligible
Until recently, most health sharing members couldn’t contribute to health savings accounts (HSAs) because health sharing plans aren’t qualified HDHPs.
For years, HSA SECURE was the only HSA-compatible option. It included a limited-benefit health plan designed to maintain HSA eligibility under the Affordable Care Act.
Recent innovations in healthcare financing now allow business owners, independent contractors, and those with verifiable self-employment income to buy a standalone limited benefit HDHP. This can be paired with any health sharing plan.
So any health sharing plan can now be combined with a health savings account, in combination with HSA MEC.
What is HSA MEC?
HSA MEC, offered by HSA for America, is a limited benefit plan that complements your existing health sharing plan.
It’s designed to make you eligible to contribute to an HSA, even if you’re not covered by a traditional HDHP.
Benefits of HSA MEC
- Preventive Care and Flu Shots: Includes preventive care services and access to annual flu shots and other immunizations.
- Telemedicine Services: Access telemedicine services without a copay, providing convenient and cost-effective healthcare.
- Compatible with Health Sharing Plans: Works alongside your health sharing plan, offering an additional layer of financial and health security.
- HSA Account Inclusion: Comes with an HSA account, allowing you to contribute and save for medical expenses.
Why Choose HSA MEC?
For those with health sharing plans, HSA MEC is a new, innovative, and affordable way to become eligible for HSA contributions.
It bridges the gap between non-traditional health coverage and the benefits of an HSA.
And because it’s a limited benefit plan, it does so with little or no overlap with your health sharing plan (except as necessary to preserve MEC status), and it does so at a minimal cost.
Alongside your health sharing plan, HSA MEC offers preventive care and telemedicine services, enhancing your healthcare options.
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Maximizing Your Healthcare Savings
Understanding HSA eligibility and options like HSA MEC helps you save on taxes while ensuring financial protection for medical expenses.
The right strategy can greatly impact how you manage healthcare costs, whether you have an HDHP or a health sharing plan.
If you are unsure about your eligibility or need help selecting the best HSA-eligible plan, our Personal Benefits Managers at HSA for America are here to guide you.
Contact us today to find the right solution, maximize your savings, and take control of your healthcare future.
For Further Reading:
- How to Open an HSA in Colorado
- Colorado Residents: What To Do With Your Tax Refund in 2025
- How to Get the Most Out of Your HSA Account
HSA Eligibility FAQs
I have a health plan that only covers telehealth and other remote care. Can I still be HSA eligible?
As long as you are covered under a qualified HDHP and meet the other HSA eligibility criteria, having telehealth or remote care coverage won’t disqualify you from contributing to an HSA.
I’m enrolled in an HDHP, but my spouse has a regular health plan from her employer. Am I still eligible?
Yes, you are HSA eligible as long as you meet the other criteria and are not covered under your spouse’s plan.
I have a prescription drug plan separate from my HDHP. Does that affect my HSA eligibility?
Possibly. If your prescription drug plan has the same deductible as your HDHP or higher, you remain HSA eligible. However, if the drug plan pays benefits before you meet your deductible, it may disqualify you from contributing to an HSA.
Can I contribute to an HSA if I have Medicare?
No. Once you enroll in Medicare (Part A, Part B, or both), you are no longer HSA eligible and cannot make new contributions to your account. However, you can still use existing HSA funds for qualified expenses.
Can I use my HSA for my spouse’s medical expenses if they are not HSA eligible?
Yes. Even if your spouse does not qualify to contribute to an HSA, you can use your HSA funds to pay for their eligible medical expenses, as long as they are considered a tax dependent.
If I switch to an HDHP mid-year, can I still contribute to an HSA?
Yes, but with some restrictions. Under the last-month rule, if you have an HSA-eligible HDHP on December 1st and maintain coverage for the next 12 months, you can contribute the full annual limit. Otherwise, your contribution may be prorated based on the number of months you were covered.
Christine Corsini is a health insurance and medical cost sharing expert, and a Personal Benefits Manager at ColoHealth. Her goal is to help people embrace life’s amazing possibilities by staying healthy, saving money, and making the best decisions when it comes to healthcare.
