What must an applicant do to contribute to a Health Savings Account (HSA)?

An applicant must be enrolled in a High Deductible Health Plan (HDHP) to contribute to a Health Savings Account (HSA). The HSA is specifically designed to work in conjunction with an HDHP, which typically has higher deductibles and lower premiums than traditional health plans. This structure encourages individuals to take more responsibility for their healthcare spending.

By having an HDHP, individuals can make tax-deductible contributions to their HSA, which can then be used to pay for qualified medical expenses. This tax advantage makes HSAs beneficial for those who are looking to save on healthcare costs and prepare for future medical expenses.

Other options do not fulfill the requirements for contributing to an HSA. For instance, merely being enrolled in any health insurance plan does not qualify; there must be a specific type of plan, namely an HDHP, involved. Regular medical insurance does not equate to the benefits offered through an HDHP, and being covered by Medicare prevents contributions to an HSA due to the terms outlined by IRS regulations. Thus, the requirement of being enrolled in an HDHP sets the necessary groundwork for any contributions to an HSA.