Introduction
Consumer-directed health plans (CDHP) combine a high-deductible plan with a tax-advantaged health savings account (HSA), authorized by the Medicare Prescription Drug Improvement and Modernization Act of 2003. CHDPs offer Americans a way to save money and invest for future health care costs, while maintaining funds for current expenses, including cost-sharing. Funds contributed to, invested in, or withdrawn from an HSA are not subject to federal income taxation, but account contributions are limited: in 2019, an individual may contribute $3,500 and a family may contribute $7,000. In order to avoid a tax penalty, all funds must be used only for IRS-defined qualified medical expenses. The funds are owned by the individual and may be rolled over from year to year.
To provide a snapshot of the CDHP market, this report from America’s Health Insurance Plans (AHIP) combines the results of a survey of AHIP member health plans and a claims-based study.