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An HSA is a savings account that is tax favored in which contributions can be made on a pre-tax basis up to certain annual limits. The HSA is then used with an HSA eligible health insurance plan. These plans typically have high deductibles and pay for qualifying medical expenses. The HSA –eligible health insurance plans are designed to save you money. The idea is to have lower monthly premiums and save the difference that you would be paying for a lower deductible plan into the qualifying HSA savings account. The HSA account will accrue interest tax free every year. The idea is to have enough money in the account to pay for the high deductible should you need to. You can also use it to pay for day to day medical expenses dental and vision care and some over the counter drugs.
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An HSA is a savings account that is tax favored in which contributions can be made on a pre-tax basis up to certain annual limits. The HSA is then used with an HSA eligible health insurance plan. These plans typically have high deductibles and pay for qualifying medical expenses. The HSA –eligible health insurance plans are designed to save you money. The idea is to have lower monthly premiums and save the difference that you would be paying for a lower deductible plan into the qualifying HSA savings account. The HSA account will accrue interest tax free every year. The idea is to have enough money in the account to pay for the high deductible should you need to. You can also use it to pay for day to day medical expenses dental and vision care and some over the counter drugs.