There is a difference between having coverage and having that coverage by a HDHP. The latter is required to be able to contribute to an HSA. Also a PPO plan can be a HDHP as well. Check with your employer or health plan to find out what you have.
I am experiencing this same issue. I am covered by an Anthem PPO with HSA. It would appear that you don't have to have an HDHP to have an HSA, but TurboTax doesn't provide that option.
In general, there is a lot of confusion with HSA and the requirements- in most cases if your company offers the HSA they do so BECAUSE you have the HDHP. It's only when the insurance or the HSA is not in the same benefit plan that the taxpayer might not qualify. The HDHP just refers specifically to the deductible- so PPO, HMO,etc all CAN be HDHP.
See What is a high deductible health plan (HDHP)?
I am having this issue aswell, my PPO plan is not a high deductible plan, and I am qualified to have an HSA with them that my employer only contributes into. Turbo tax said I would have to be penalized which is astronomical.
"and I am qualified to have an HSA with them " - with whom?
"my PPO plan is not a high deductible plan," then who is saying that you can have an HSA?
"my employer only contributes into. " There is no such HSA plan that only an employer can contribute into.
Are you perhaps talking about an HRA, a Health Reimbursement Arrangement? HRAs can be funded only by the employer.
Read about the various type of health care programs offered in conjunction with your employer in IRS Pub 969.
If you have an HRA and not an HSA, then you must not enter anything about the HRA into TurboTax. This will clean up your return a lot.