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What Is an HSA? Michigan Guide to Health Savings Accounts for 2027
A health savings account (HSA) is a tax-advantaged account for medical costs that you own and keep forever. Paired with the right plan, it's one of the best tax deals available, especially for self-employed people who buy their own coverage.
The triple tax advantage
- Contributions are tax-deductible (or pre-tax through payroll).
- Growth, from interest or investments, is tax-free.
- Withdrawals for qualified medical expenses are tax-free.
After 65, you can withdraw for any purpose and just pay income tax, like a traditional IRA.
2027 limits
| 2026 | 2027 | |
|---|---|---|
| Contribution limit, self-only | $4,400 | $4,500 |
| Contribution limit, family | $8,750 | $9,000 |
| Catch-up (age 55+) | $1,000 | $1,000 |
| HDHP minimum deductible, self-only / family | $1,700 / $3,400 | $1,750 / $3,500 |
| HDHP max out-of-pocket, self-only / family | $8,500 / $17,000 | $8,700 / $17,400 |
Who qualifies
You need to be covered by an HSA-eligible plan and have no other disqualifying coverage (like a general-purpose FSA or Medicare). New since 2026: every bronze and catastrophic plan sold on the individual market counts as HSA-eligible, even if it doesn't meet the usual high-deductible rules. Certain direct primary care memberships (up to $150 a month for one person, $300 for a family) no longer disqualify you either.
Why it's great for the self-employed
If you buy your own coverage, you can deduct the premium and deduct your HSA contribution, two separate tax breaks. See health insurance tax deductions for the self-employed. HSA contributions also lower the MAGI used for marketplace tax credits, which can help you get under the 400% subsidy line ($63,840 for one person).
Tips
- Keep receipts. You can reimburse yourself years later for qualified expenses incurred after the HSA was opened.
- Invest the balance you don't need soon. Many HSAs offer index funds.
- You can contribute for 2027 until the tax filing deadline in April 2028.
HSA plans in Michigan
You'll find HSA-eligible bronze plans on HealthCare.gov, and some private plans are HSA-qualified too. Outside the marketplace, private shared-network plans are sold in Michigan on leased PPO networks (Cigna, Aetna and PHCS PPO). They're medically underwritten, so they ask health questions and price on age and health instead of income, but you can enroll any month and coverage starts on the 1st.
More on maximizing the account: how deductibles work. Or see HSA-eligible plans for your ZIP code.
Frequently asked questions
What is the HSA limit for 2027?
$4,500 for self-only coverage and $9,000 for family coverage, plus a $1,000 catch-up contribution if you're 55 or older.
Are bronze plans HSA-eligible?
Yes. Since January 1, 2026, all bronze and catastrophic individual-market plans are treated as HSA-eligible.
Do HSA funds expire?
No. Unlike an FSA, HSA money rolls over every year and stays with you if you change plans or jobs.