A Health Savings Account lets eligible people set aside money with tax advantages to pay qualified medical expenses. The money belongs to you, rolls over each year, and stays yours when you change insurance or jobs.
There are two separate pieces: your health insurance plan and your savings account. Choosing an HSA-compatible plan doesn’t automatically open or fund an HSA.
HSA contribution limits for 2026 and 2027
| Coverage | 2026 contribution limit | 2027 contribution limit |
|---|---|---|
| Self-only | $4,400 | $4,500 |
| Family | $8,750 | $9,000 |
| Additional catch-up contribution, age 55 or older | $1,000 | $1,000 |
These are the full-year limits. Your personal limit may be lower if you’re eligible for only part of the year.
Employer contributions count toward the same limit as your own contributions. Having multiple HSA accounts doesn’t multiply the amount you can contribute.
For married couples subject to the shared family contribution limit, the family amount is shared—not available separately to each spouse. If both spouses qualify for catch-up contributions, each spouse’s additional $1,000 must go into their own HSA.
Bronze and catastrophic plans are now HSA-compatible
Beginning January 1, 2026, individual market Bronze and catastrophic plans became HSA-compatible under federal law. That continues in 2027.
This is a significant change for Colorado shoppers. Previously, many Bronze plans didn’t qualify because they covered certain services before the deductible or had out-of-pocket limits above the usual IRS threshold.
A Bronze plan can now have office-visit copays before the deductible and still be HSA-compatible. Don’t assume you must pay for every service yourself until the deductible simply because you can pair the plan with an HSA.
IRS guidance also extends the treatment to qualifying off-exchange individual Bronze and catastrophic coverage. The change doesn’t automatically make every employer-sponsored Bronze plan HSA-compatible.
For Silver, Gold, and employer plans, check the specific plan’s HSA designation.
You must also meet the personal eligibility rules
An eligible insurance plan is only part of the requirement.
To contribute, you generally cannot be enrolled in Medicare, have other disqualifying health coverage, or be eligible to be claimed as another person’s tax dependent.
A general-purpose health care FSA—including a spouse’s FSA that can reimburse your expenses—can interfere with eligibility. Limited-purpose dental and vision FSAs work differently.
If you stop being eligible, you keep your existing HSA balance and can continue using it for qualified expenses. Eligibility determines whether you can make new contributions.
How the tax benefits work
An HSA can provide three federal tax benefits:
- Eligible contributions are deductible, or excluded from income when made through qualifying employer arrangements.
- Interest and investment earnings grow tax-free.
- Withdrawals for qualified medical expenses are tax-free.
You don’t have to spend the balance each year. You can save it for future expenses, and some account providers offer investment options.
Keep records supporting tax-free withdrawals. An expense generally must occur after the HSA is established and cannot also be reimbursed elsewhere.
HSA contributions and Colorado health insurance subsidies
Deductible HSA contributions can lower the modified adjusted gross income used to determine marketplace financial assistance.
For households near a subsidy income cutoff, that can affect the cost of health insurance substantially. The contribution still has to fit your eligibility and annual limit.
Use our MAGI calculator to estimate income, and read our Colorado health insurance subsidies guide for the coverage-year guidelines.
Compare the insurance benefits separately
HSA compatibility doesn’t tell you whether a plan has the best network, prescription coverage, or total cost for your household.
Compare:
- Monthly premiums after any financial assistance.
- Your doctors, hospitals, and prescriptions.
- Deductibles, copays, and coinsurance.
- The annual out-of-pocket maximum.
Meeting the deductible doesn’t necessarily end your expenses. You may continue paying coinsurance or copays until you reach the applicable out-of-pocket maximum for covered, in-network care.
If you’re considering catastrophic coverage, review who qualifies for a catastrophic plan and try our 2027 catastrophic premium calculator.
Opening an account
You can choose an HSA provider separately from your insurance company. Compare account fees, investment choices, cash requirements, and how easily you can contribute or reimburse yourself.
You can also enroll in an HSA-compatible health plan without opening an account. The savings account is optional.
Changing coverage during the year
A midyear change can affect your contribution limit. The usual calculation considers your eligibility and coverage on the first day of each month.
A special “last-month rule” can sometimes allow a larger contribution, but it comes with a testing period. Don’t assume enrolling in December automatically gives you the full annual limit without further conditions.
Medicare enrollment also requires attention, particularly when coverage starts retroactively.
Help choosing an HSA-compatible plan
Contact us if you’d like help comparing Colorado health insurance options.
We’ll look at the premiums, providers, prescriptions, and benefits together. An HSA can be useful, but the insurance still needs to work for you.