How does an HSA arrangement Work?
Take the premiums you currently spend on a high cost traditional individual or group plan and split it into two parts. One part will go to pay for the lower cost higher deductible health insurance plan and the other part– “the amount saved”– goes into your personal HSA. There is complete flexibility on where the saved part of the premium goes. The savings placed in the HSA can be used for medical expenses until the deductible is met. Should the need arise for a larger medical expense the higher deductible health plan would kick in and limit the out-of-pocket expenses to the selected deductible each year.
