WHAT IS A HIGH DEDUCTIBLE HEALTH PLAN (HDHP)? 
1. What is a "high-deductible health plan" (HDHP)? .
Specifically, for single coverage, a HDHP has an annual deductible of at least $1,100 and annual out-of-pocket expenses required to be paid (deductibles, co-payments and other amounts, but not premiums) not exceeding $5,650. For family coverage, a HDHP has an annual deductible of at least $2,200 and annual out-of-pocket expenses required to be paid not exceeding $11,000. In the case of family coverage, no matter which family member or members incur expenses, no amounts are payable from the HDHP until the family has incurred annual covered medical expenses in excess of the minimum annual deductible. Amounts are indexed for inflation. The exceptions are for preventive care.
2. What are the special rules for determining whether a health plan that is a network plan meets the requirements of a HDHP?
A network plan is a plan that generally provides more favorable benefits for services provided by its network of providers than for services provided outside of the network. In the case of a plan using a network of providers, the plan does not fail to be a HDHP (if it would otherwise meet the requirements of a HDHP) solely because the out-of pocket expense limits for services provided outside of the network exceeds the maximum annual out-of-pocket expense limits allowed for a HDHP. In addition, the plan's annual deductible for out-of- network services is not taken into account in determining the annual contribution limit. Rather, the annual contribution limit is determined by reference to the deductible for services within the network.
3. What kind of other health coverage makes an individual ineligible for a HSA?
Generally, an individual is ineligible for a HSA if the individual, while covered under a HDHP, is also covered under a health plan (whether as an individual, spouse, or dependent) that is not a HDHP.
4. What other kinds of health coverage may an individual maintain without losing eligibility for a HSA?
An individual may have "permitted insurance." Permitted insurance is insurance under which substantially all of the coverage provided relates to liabilities incurred under workers' compensation laws, tort liabilities, liabilities relating to ownership or use of property (e.g., automobile insurance), insurance for a specified disease or illness, and insurance that pays a fixed amount per day (or other period) of hospitalization. In addition to permitted insurance, an individual may have coverage for accidents, disability, dental care, vision care, or long-term care. If a plan that is intended to be a HDHP is one in which substantially all of the coverage of the plan is through permitted insurance or other coverage as described in this answer, it is not a HDHP.
5. Can a HSA be offered under a cafeteria plan?
Yes. Both a HSA and a HDHP may be offered as options under a cafeteria plan. Thus, an employee may elect to have amounts contributed as employer contributions to a HSA and a HDHP on a salary-reduction basis.
6. Are HSAs subject to COBRA continuation coverage under section 4980B?
No. HSAs are not subject to COBRA continuation coverage.
7. Can COBRA employees contribute to their HSA?
An individual can choose to contribute to their HSA as long as they have the High Deductible Health Plan in force.
