Purpose of Health Insurance

You can use your health savings account to help pay for the expenses your health plan does not cover.
A Dr. Mike Definition: Deductible - A deductible is the amount you must pay out-of-pocket each year for health-related expenses before your insurance policy begins to pay. There is a wide range of deductibles - anywhere from none to $10,000 a year or more.

In order to qualify to open an HSA in 2010, your HDHP minimum deductible must be at least $1,200 for self-only coverage or $2,400 for family coverage. Your annual out-of-pocket expenses, including your deductible and co-payments for 2010 cannot exceed $5,950 for self-only coverage or $11,900 for family coverage.

The amount of the required deductible and out-of-pocket expenses is adjusted annually to account for inflation.