Health Savings Account (HSA)

HSA Benefits

Savings tool with investment earnings
Flexibility to pay current medical expenses or save for future needs
Tax-deductible contributions
Tax-deferred earnings

Tax-free withdrawals (if used properly)
Balance carries over from year to year
Remains with you, regardless of change in coverage or employment

Account Options

Certain requirements must be meet to be eligible for an HSA (Health Savings Account); most importantly, you must be covered under a high deductible health plan (HDHP). An HDHP generally has lower premiums than other types of health plans, but also has higher deductibles. Until your deductible is met, you must pay for all your medical expenses - expect for preventive care, which is almost always covered. Assuming your HDHP is HSA - compatible, you can use your HSA assets to pay for these expenses.