In addition, there are no income restrictions on who can contribute to a HAS, and it is not necessary to have earned income to contribute to a HAS. HASs, on the other hand, cannot be established by those who rely on someone else’s tax return. In addition, children are unable to set up HSAs on their own. Get more info about Elementary Health. Anyone interested in starting a Health Savings Account must first enroll in a High Deductible Health Plan (HDHP). In fact, the Medicare Modernization Act, which included HSAs, boosted the popularity of HDHPs. A high-deductible health plan is one in which the deductible is set at a certain amount. Before the insured person can receive money from the insurance company, this limit must be reached. It does not pay for first-dollar medical bills. As a result, an individual must pay for the initial expenses, which are referred to as out-of-pocket costs.Immunization and preventive health care costs are excluded from the deductible in a number of HDHPs, implying that the individual is reimbursed for them. Individuals (both self-employed and employed) and businesses can participate in HDHPs. In 2008, insurance companies in the United States began offering HDHPs with deductibles as low as $1,100 for self-only coverage and as high as $2,200 for self-only and family coverage. Out-of-pocket maximums for HDHPs are $5,600 for self-only enrolment and $11,200 for Self and Family enrolment. Because they are set by the Internal Revenue Service, these deductible limits are referred to as IRS limits (IRS). In HDHPs, the deductibles and premiums paid by the insured are inversely proportional, meaning that the higher the deductible, the lower the premium, and vice versa. The main ostensible benefits of HDHPs are that they will a) reduce health-care costs by making patients more cost-conscious, and b) make insurance premiums more affordable for the uninsured.