What is a Health Savings Account (HSA)?
(Back to top) A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for their healthcare. HSAs enable you to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax-free basis.
A. An HSA is a savings account that individuals can establish if they enroll in a specific qualified High Deductible Health Plan (HDHP) and meet eligibility requirements established by the Internal Revenue Service. They save money on a pre-tax basis, up to $6,450 in 2007 and $6,700 in 2008, earn tax-free money on balances in the account, distribute money tax-free for eligible health related expenses and control and manage financial assets like other assets. The HDHP plan has mimimum amd maximum Out-of-Pocket deductibles, minimum $1,100 and $2,200 for single and family contracts and maximum $5,600 and $11,200 for single and family. The website www.hsainsider.com is a very useful source.
A Health Savings Account is a savings account that allows members to save money for out-of-pocket medical expenses. It is similar to an MRA. An HSA allows you to pay for current health expenses for yourself and dependents, but, unlike an MRA, the money in an HSA can be carried from one year to the next. There is no ‘use it or lose it’ rule with HSAs. Monies pledged to an HSA can not be used until the monies is deposited into the account. To be able to open an HSA, you must be covered by a High Deductible Health Plan (HDHP), in this case the University’s Medical Plan B, and have no other non-HDHP health coverage (dental and vision coverage is acceptable). Contributions to an HSA can only be made while covered by an HDHP. All aspects of the HSA are ultimately the responsibility of you, the employee. You are solely responsible for adhering to all rules governing the establishment, investment and use of the HSA funding. The University will not incur any responsibility other than ensuring t
Related Questions
- I am enrolling in an HSA (Health Savings Account). Do I enter the employee contribution amount or the employee AND the employer contribution amount in the Annual Pledge field?
- I am enrolling in a HSA (Health Savings Account). Do I enter the employee contribution amount or the employee AND the employer contribution amount in the Annual Pledge field?
- What is a Health Savings Account (HSA)?
