Open Enrollment Tax Tip More H.S.A. Compatible Plans

Starting 2026, bronze and catastrophic plans are treated as high deductible health plans. That means you will be eligible for a Health Savings Account Contribution (H.S.A.) A H.S.A. has triple tax savings.

Together, the benefits of pre-tax contributions, tax-free earnings, and tax-free withdrawals for qualified medical expenses can add up to significant savings over the course of a family’s life if they are healthy and let the funds accumulate. So think of the H.S.A. as a piggy bank for medical expenses that can grow similar to an Individual Retirement Account (IRA).

A plan in the bronze level shall provide a level of coverage that is designed to provide benefits that are actuarially equivalent to 60 percent of the full actuarial value of the benefits provided under the plan. A catastrophic health plan is for (a) those under age 30 or (b) subject to certain exemptions for economic hardship. Catastrophic plans provide (a) essential health benefits, except that the plan provides no benefits for any plan year until the individual has incurred cost-sharing expenses in an amount equal to the annual limitation and (b) coverage for at least three primary care visits.