THE BASICS OF HEALTH SAVINGS ACCOUNTS

Health Savings Accounts, or HSAs, are an alternative to traditional health insurance that offers tax advantages and greater control over your medical expenses. With an HSA, you can pay for current health expenses—and save for future qualified medical and retiree health expenses—all on a tax-free basis.

To open an HSA, you must be covered by a High Deductible Health Plan (HDHP). Once you’re enrolled, you own and have complete control over the money in your HSA. You make the decisions on how you want it spent, not a third party or a health insurer. You also get to decide how and where you want to invest this money to grow your account.

HSAs and HDHPs go together like peanut butter and jelly. An HDHP provides traditional medical coverage and an HSA is a tax-free way to build savings for your future medical expenses. Together, they give you greater flexibility and control over how you use your health care benefits.

• Reduce your monthly premiums.
• Choose your own doctors and hospitals—there are no network restrictions.
• Your own HSA contributions are tax-deductible.
• Pay your medical expenses with pre-tax dollars.
• Interest earned on your account is tax-free.
• Withdrawals for qualified medical expenses are tax-free.
• Unused funds and interest are carried over, without limit, from year to year.
• You own the HSA and it is yours to keep—even when you change plans or retire.
• Your HSA is administered by a trustee/custodian.
• Grow your account until retirement—like an IRA account.

VIEW OUR HEALTH SAVINGS ACCOUNT VIDEO—HOW HSAs WORK

Helpful Links:

• http://en.wikipedia.org/wiki/Health_savings_account
• http://www.treas.gov/offices/public-affairs/hsa
• http://www.ustreas.gov/offices/public-affairs/hsa/forms/

Learn More: Who is eligible and what is covered?

Or Compare: Calculate your insurance savings by owning an HSA