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Benefits of a Health Savings Account

A Health Savings Account (HSA), is a medical savings account that is specifically set up in conjunction with a High Deductible Health Plan (HDHP). There are a number of benefits to be gained from having a Health Savings Account.

  1. Out of Pocket Expenses

    • The funds that the account holder deposits into the account are used to cover the deductible, which is a fixed dollar amount that you must pay out-of-pocket before your health insurance begins to cover any expenses.

    Tax-Savings

    • Any contributions to a Health Savings Account are not subject to any federal income tax. Withdrawals are also tax-free for any qualifying health expenses.

    Lower Premiums

    • Thanks to the Health Savings Account, the cost of a High Deductible Health Plan is much lower than that of a traditional health insurance policy.

    Investment

    • The deposited funds earn and accumulate interest and can even be invested in the stock market.

    Roll-over

    • Any funds that are not used are "rolled over" from one year to the next. It is always available to the account holder.

    Consumer Driven

    • The account holder has sole discretion in making his own health care choices, determining how the HAS deposits are spent.

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