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What is an HSA?
HSAs are tax-favored trust or custodial accounts that earn you interest. They combine tax-free savings earmarked for qualified medical expenses with a qualified High Deductible Health Plan (HDHP).How does it work?
An HSA and qualified HDHP work as partners to offer you protection in time of need while empowering you as a conscientious health consumer. First, money deposited tax-free into an HSA is used for qualified medical expenses not covered by insurance or that fall short of your plan's deductible. Next, the high deductible plan - traditionally lower premiums - would kick in to cover any larger, qualified medical expenses should the need arise. You gain the power to choose the best way to use the money typically spent on health insurance alone and the potential to let the account grow tax-favored until you need it most.
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