Health Savings Accounts (HSA)

Health Savings Accounts, or HSAs, act as personal savings accounts for your medical expenses, but with significant tax advantages. Similar to an FSA, an HSA allows you to contribute a chosen amount of your pre-tax income to designated accounts from which you can be reimbursed for qualifying medical expenses. An HSA, however, gives you greater control of your contributions, as you decide how to invest and grow your savings year after year.

The money you contribute to your HSA is yours to manage, to invest how you chose, whether in stocks, bonds, or mutual funds. And, because the money you set aside from your pay is done so pre-tax, you can see your money in many areas, from your take-home pay to your growing investments.

When you acquire qualifying medical expenses, your HSA is there to reimburse you where your insurance coverage may not otherwise. Additionally, any unused funds at the end of plan year carry over from year to year – no “use it, or lose it”!

In order to be eligible to contribute to an HSA, you must be covered by a High Deductible Health Plan (HDHP) and may not be covered by a separate benefit plan providing “first dollar” coverage, such as an FSA. An HDHP assists with traditional medical coverage, but for the expenses it doesn’t cover, your HSA is there to assist you year after year.