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I have a CDHP health insurance plan that comes with an Health Savings Account. As I'm filing my taxes, Turbotax has informed me that my HSA is being additionally taxed because I do not have HDHP coverage.

Does my CDHP plan count as HDHP for tax purposes? If not, why do employers offer CDHP with HSA?

If its relevant: my deductible is $2000 in network and $4000 out of network

I found this site which claims that the 2016 minimum deductible for HSAs is $1300 for my case, which seems to imply that my plan is an HDHP. Is my interpretation correct?

  • Are you by any chance claimed as a dependent on someone else's tax return? Do you have any other health coverage that might make you no longer eligible for the HSA? – Ben Miller Jan 28 '17 at 2:27
  • Do you have any more information as to why Turbotax thinks you don't have HDHP coverage? – Ben Miller Jan 28 '17 at 2:36
  • @BenMiller I am not a dependent and I have no other insurance – David Grinberg Jan 28 '17 at 2:54
  • I'm trying to figure out why TurboTax thinks you don't have HDHP coverage. Did TurboTax ask you if you had an HDHP, and you said "no"? – Ben Miller Jan 28 '17 at 2:55
  • @BenMiller Yeah, I initially said no because my plan said CDHP and not HDHP, but it seems like that was a mistake. – David Grinberg Jan 28 '17 at 3:06
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As I understand it, Consumer-Driven (or Consumer-Directed) Health Plan is a relatively recent marketing term for health insurance plans. The term has no legal definition, but a CDHP generally is a lower-cost health plan bundled with some sort of health spending plan, such as an HSA, FSA, or HRA.

A CDHP can consist of an HSA and an HSA-eligible HDHP, but it also can be something else.

There are several regulations that a health plan needs to meet in order to be considered an HSA-eligible HDHP, and the best way to determine whether or not it is would be to ask the insurance company themselves. If your plan is a CDHP with an included HSA, and your deductible is over $1300 (for a self-only plan), it is most likely an HSA-eligible HDHP.

Remember that in order to remain qualified for the HSA, you aren't allowed to have any other health coverage.

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