Healthcare Beginner: Introduction to Health Savings Accounts

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Health savings accounts are limited to individuals who _______.

Are working

Don't have access to employer-sponsored health insurance

Have annual income below $250,000

Have coverage under a qualified health insurance plan

Have coverage under a qualified health insurance plan. Health savings accounts are available to individuals who have coverage under an HSA-qualified plan, but none of the other limitations apply.

A disadvantage of having a health savings account is that you must switch to a plan that is HSA-qualified, if you do not currently have such a plan.

True

False

True. HSA-qualified insurance has high deductibles as well.

One of the advantages of health savings accounts is that the HSA-qualified insurance provides _______.

Protection against high or unexpected medical bills

The benefit of the lower fees negotiated between their insurance carrier and their health care providers, instead of paying the full charges

Coverage for preventive care services to help you maintain their health and avoid illness and disease

All of the above

All of the above. HSAs provide all these advantages to purchasers of HSA-qualified insurance.

Which of the following is not an advantage of HSAs?

Tax savings

You can use HSA funds tax-free to pay for any expense you want

Portability of the account

HSA funds can be invested

You can use HSA funds tax-free to pay for any expense you want. While you can use your HSA funds tax-free to pay for many medical expenses, unless it is an IRS-approved qualified medical expense it cannot be paid tax-free.

Health savings accounts offer Americans a way to _______.

Put money into a "rainy day fund" for health care

Fill in the gaps for insurance policies that cover larger medical bills

Save money on health insurance

All of the above

All of the above. HSAs provide all these opportunities for Americans.