Headline: Deductible plans

HSA-Qualified High Deductible Health Plan (HDHP)


With this plan, you’ll pay the full charges for most services — including prescription drugs — until you reach your deductible. Then you’ll start paying copays or coinsurance for all services covered by your plan for the rest of the calendar year.

Even before you reach your deductible, most preventive care services are covered at little or no cost to you — all year round. This gives you convenient access to routine care that helps you stay healthy and get the most out of life.

Learn about the difference between preventive and non-preventive services.

After you reach your out-of-pocket maximum, we’ll provide most covered services at no cost to you for the rest of the calendar year. This can help protect you financially if you have a serious illness or injury.

Your HSA


You can also set up a health savings account (HSA), which allows you to contribute pretax or tax-deductible dollars* to pay for medical care and services. Your employer may also contribute funds to your HSA. Since you can use your HSA funds to help pay for expenses such as your deductible, your HSA may help reduce your out-of-pocket costs as well.

Paying for services


You can use your HSA to pay for qualified medical expenses, usually with a convenient debit card connected to your account. Qualified medical expenses include copays, coinsurance, and deductible payments for a wide range of services — for example:

  • prescription drugs
  • office visits with your personal physician or specialty physicians
  • outpatient surgery
  • X-rays, MRIs, CT scans, PET scans, and laboratory tests
  • physical, occupational, and speech therapy visits
  • allergy injection visits
  • hospitalization (including X-rays, lab tests, and drugs received during your stay)
  • inpatient surgery and anesthesia
  • emergency services
  • ambulance services

Qualified medical expenses may also include services not covered by your health plan.

You choose how to spend it


Your HSA belongs to you, and you’re in charge of managing it. That means you can use the money in your tax-free HSA to pay for qualified medical expenses, now or in the future. Or you can grow the account and use the money after you turn 65.

No matter when you choose to use it, the money in your HSA is yours. Whatever you don’t spend rolls over to the next year, and you can take it with you if you retire or change jobs or health plans.

Calculate your savings


Our calculators can give you an idea of how an HSA can reduce your taxes —  and grow over time.

How family deductibles work with an HSA


If your family is covered under your plan, there are a couple of different ways your deductible and out-of-pocket maximum may work:

  • All plans have a family deductible and a family out-of-pocket maximum. Certain plans only have these combined deductible and out-of-pocket maximum amounts. (They’re sometimes called “aggregate” plans.)
  • Some plans also have individual deductibles and individual out-of-pocket maximums, which work together with the family deductible and family out-of-pocket maximum. (They’re sometimes called “embedded” plans.)

Family deductibles
All plans have a family deductible. As soon as the combined medical expenses of everyone in your family equal this amount, you’ll reach your family deductible. Then all family members covered under your plan will start paying copays or coinsurance for most covered services for the rest of the year.** 

Individual deductibles — applicable to some plans
Some plans also have individual deductibles that work together with the family deductible. Any covered family member who reaches his or her individual deductible will start paying copays or coinsurance for most covered services for the rest of the year. All other family members will keep paying full charges for most services until they reach their individual deductible or until the family deductible is met.

If you’re not sure which type of deductible and out-of-pocket maximum you have, check your Evidence of Coverage. (After signing in, click on "Eligibility and benefits" to find your Evidence of Coverage.) You can also call the member services number on the back of your Kaiser Permanente ID card.

Where to open an HSA


You can open an HSA administered through Kaiser Permanente or at any eligible financial institution. If you choose Kaiser Permanente, you'll receive information on setting up your HSA after you enroll.

After you set up an HSA through Kaiser Permanente, you'll receive a Health Payment Card and a welcome letter that explains how to get started. You can use your Health Payment Card like a debit card to pay for qualified medical expenses with funds from your HSA.

You'll be able to manage your HSA through Kaiser Permanente online at kp.org/healthpayment or with our free app, which you can download for your smartphone or mobile device. A monthly account administration fee of $3.25 per member may be paid by you or your employer. The fee is waived once your account balance reaches $2,000.

You also have the option of opening an HSA at any eligible financial institution.

Learn about managing your HSA.

*The tax references on this website relate to federal income tax only. Consult with your financial or tax adviser for information about state income tax laws. Federal and state tax laws and regulations are subject to change. If tax, investment, or legal advice is required, seek the services of a qualified professional.

A qualified medical expense is defined under Internal Revenue Code Section 213(d). For a list of qualified medical expenses, download IRS Publication 502, Medical and Dental Expenses, at irs.gov/publications. As an HSA account holder, you’re ultimately responsible for determining whether an expense is a qualified medical expense.

Services not covered by your plan will not contribute towards your deductible and out-of-pocket maximum.

**If your family deductible is the same amount as your family out-of-pocket maximum, this won’t be true. In that situation, after your family reaches this amount, all family members covered under your plan will receive most covered services at no cost for the rest of the calendar year.

††Monthly account administration fee of $3.25 per account-holder may be paid by you or your employer. The fee is waived for balances over $5,000.