What is a HSA-eligible health insurance plan?
HSA-eligible health insurance plans are those compatible health insurance plans with a high deductible. A high deductible health insurance plan has several benefits. First, if you opt for a high deductible health insurance plan, you’ll generally pay lower monthly premiums than if you opted for a low deductible health insurance plan. A Health Savings Account, which is like a personal medical savings account can be offered by such financial institutions as banks and credit unions, allows you to save money on a pre tax basis that you can then use to pay for most medical expenses that are not already covered by your health insurance plan. Both you and your employer are allowed to add funds to your HSA.
