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Yes. In order to contribute to a Health Savings Account (HSA), you must be covered by a High-Deductible Health Plan (HDHP).
The question in TurboTax is asking what type health insurance coverage you had with your employer-sponsored plan. Based on the information in your question, you would answer that as Family coverage.
See this TurboTax article for more information on HSAs.
This is one of the questions that generally arises about the eligibility to have an HSA at least at the Federal 1040 level since some states require health insurance coverage,
For Federal purposes, for it to be a family HDHP, it must have a minimum annual deductible of $3300 and a maximum out-of-pocket of $16,600 (other than for premiums). Many medical plans with family coverage do not meet these requirements.
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