Health Savings Account
Owned by the individual, a health savings account, or HSA, is an interest-bearing account that may be used to pay for qualified medical expenses. The account grows tax-free, and there are no time limits on spending.
Advantages of an HSA
HSAs encourage you to take an active role in managing your own health care costs and use the benefits in whatever ways work best for you.
There are many benefits of HSAs:
- The accounts are interest-bearing.
- The HSA gives you a way to save for future medical expenses, and it meets these needs with pre-tax or tax-deductible dollars.
- HSAs are controlled by you.
- Accounts are portable, so if you change jobs, you can take it with you.
Because you own the account, you can use the funds at your own discretion, within legal requirements. To use your HSA for claims-related qualified expenses, you can use a convenient debit card.
Determining Your Eligibility for an HSA
You are eligible to open an HSA if you are:
- Covered by a qualified high deductible health plan;
- Not covered by another health care plan, such as a health plan sponsored by your spouse’s employer, including a general purpose FSA or Medicare; and
- Not claimed as a dependent on another individual’s tax return.