What is the relationship between an HDHP and a Health Savings Account?

The relationship between a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA) is that only individuals enrolled in HDHPs are allowed to contribute to HSAs. HDHPs are designed to have higher deductibles and lower premiums compared to traditional health insurance plans. They provide the framework that qualifies an individual to open and contribute to an HSA, which is a tax-advantaged savings account specifically for health-related expenses.

When someone has an HDHP, they can use an HSA to pay for qualified medical expenses with pre-tax dollars. This arrangement helps individuals to save money on taxes while also enabling them to cover out-of-pocket healthcare costs.

The other options do not accurately reflect this relationship. For instance, stating that HDHPs and HSAs are totally unrelated ignores the clear connection that exists; asserting that HSAs can be used with any insurance plan is misleading because the tax benefits of HSAs are specifically tied to being in an HDHP. Lastly, the claim that HDHPs must cover all basic healthcare services without a deductible does not accurately represent the features of HDHPs, which are defined by their higher deductible requirements.