Health Savings Account

HSAs provide for employee health benefits in the face of rising health insurance costs. They were created to encourage consumer-driven health plans. Plan participants pay directly for routine health care services, making participants more responsible consumers while reducing the cost of high-deductible insurance coverage.

Updated content: Eligible individuals can accumulate money, tax-free, in HSAs to pay for qualified medical expenses. You or the individual can provide funds that are placed in an individually owned account, normally provided by a bank or insurance company. After the account is established and funded, earnings accrue on a tax-free basis and are portable without penalty if¹