Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
For an HSA to be offered through an employer-sponsored group arrangement, the group health plan must:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
An HSA can only be paired with a qualifying high-deductible health plan (HDHP) under Internal Revenue Code Section 223. The group plan must meet the applicable deductible and out-of-pocket maximum requirements, and the individual must not be covered by another non-HDHP plan that would disqualify HSA contributions. Employers often combine the HDHP with a cafeteria plan so employees can contribute pre-tax. This group design question falls under the consumer-driven health plan (CDH) modes examined in AH-III.B.1b.
Why the other options are wrong
- B) An HMO with no deductible fails the HDHP requirement that makes the account holder HSA-eligible.
- C) HRAs are employer-funded, not employee-funded, and cannot be used to open an HSA.
- D) First-dollar coverage would violate the high-deductible requirement that defines an eligible HDHP.
Memory hook
HSA needs an HDHP behind it; no high deductible, no account deal.