A Health Savings Account (HSA) is a savings product that offers Americans a different way to pay for their health care. Passed by Congress in 2003, HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
Health Savings Accounts consists of two components: a qualified High Deductible Health Plan (HDHP) and an HSA Administrator. An HDHP generally costs less than what traditional health care coverage costs, so the money that you save on insurance can therefore be put into the Health Savings Account. The HSA Administrator is a financial institution that oversees your Health Savings Account.
An HSA is much like an IRA. You own and you control the money in your HSA. Decisions on how to spend the money are made by you without relying on a third party or a health insurer. You will also decide what types of investments to make with the money in the account in order to make it grow. Also, your employer may make contributions to your HSA. Your contributions to an HSA may be withdrawn at any time to pay for qualified medical expenses by check or debit card.
HDHPs and HSA Administrators
How Funds Are Used
Qualified Medical Expenses
Calculate Your Savings