What is a Health Savings Account?
• An HSA is a tax-sheltered trust account that you own for the purpose of paying qualified medical expenses for yourself, your spouse, and your dependents. When you enroll in an HDHP, the health plan determines whether you are eligible for a Health Savings Accounts (HSA) or a Health Reimbursement Arrangement (HRA) based on the information you provide.
Health Savings Accounts (HSA) give consumers another option for managing the high costs of health care. HSAs give consumers more control over their money by allowing consumers to invest their money for current and future medical expenses and have it grow tax-free. Unlike flexible spending accounts, which are controlled by employers and have a use-it-or-lose-it feature, HSAs are portable and belong to the consumer for life. Small businesses are especially well served by HSAs. Traditional health care insurance is often too expensive for small businesses to offer. With a high-deductible plan and corresponding HSA, business owners can offer employees the health care security they need.
