A Health Savings Account (HSA) is 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 control the money in your HSA. You decide how to spend the money, not a third party or health insurer.
An HDHP provides traditional medical coverage and an HSA is a tax-free way to save for your future medical expenses. Together, they give you greater flexibility and control over how you use your health care benefits.
The HDHP features higher annual deductibles than traditional health plans. Depending on your HDHP, you may have the choice of using in-network or out-of-network providers. Using in-network providers typically will save you money. Except for preventative care, you must meet the annual deductible before the plan pays benefits. Preventative care services are generally paid either before you meet your deductible, after you meet a smaller deductible or on a co-payment basis.
*Consult your tax advisor.