A HDHP (High Deductible Health Plan) is a health plan that typically has a higher yearly deductible and lower monthly premium rates.  The following explains what is considered an HSA compliant High Deductible Health Plan.

To be an HSA-compliant health plan, the following must be true:

• Minimum (in 2005) $1,000 single-only in-network deductible/$2,000 family in-network deductible
•  Maximum (in 2005) $5,100 single-only in-network out-of-pocket maximum/$10,200 family in-network out-of-pocket maximum
•  All services must apply toward deductible (including perscription drugs), with the exception of preventive care
•  There can be single (embedded) deductible(s) on famliy policies, as long as the single deductible is not less than the minimum family deductible amount established by HSA law ($2,000 in 2005).  When individual (embedded) deductibles are allowed on family contracts (based on the amount of the individual deductible), the maximum annual HSA contribution is limited to the least of the following amounts: