What is a HSA heatlh insurance plan?
A Health Savings Account(HSA) is an alternative to traditional health insurance because it is a savings product that offers a different way for consumers to pay for their health care. An HSA works something like an IRA, except the money is used to pay eligible medical expenses with pre-tax dollars(tax-free) and save for retirement on a tax-deferred basis. You must be covered by a High Deductible Health Plan (HDHP) to be able to take advantage of HSAs. 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. 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.
