Health Savings Account - HSA - FAQs

How does an HSA work?

Legislation establishing Health Savings Accounts (or "HSAs") took effect on January 1, 2004. HSAs and HSA-eligible health insurance plans are becoming more and more popular. Here are the basics:
An Health Savings Account is a tax-favored savings account that may be used in conjunction with an HSA-eligible high deductible health insurance plan to pay for qualifying medical expenses.

Choosing an HSA-eligible health insurance plan may help you save money. Typically, the monthly premium on an HSA-eligible high deductible plan is less expensive than the monthly premium for a lower-deductible health insurance plan.

Contributions to an HSA may be made pre-tax, up to certain annual limits.

Funds in the HSA may be invested at your discretion. Unused funds remain in the account and accrue interest year-to-year, tax-free.

Not all high-deductible plans are eligible for use in conjunction with an HSA. For more details on HSAs, click here.

Health Savings Accounts

1. What is an HSA?
2. Why should I get an HSA?
3. What are qualified medical expenses?
4. What insurance plans are HSA-eligible?
5. How much can I contribute to my HSA?
6. Is my money safe?
7. How do I use the funds in my HSA?
8. How do the tax savings work?
9. How can I get an HSA?