Introduction to Health Savings Accounts

Increasingly, employers are asking their employees to enroll in health insurance policies with higher deductibles than traditional policies, either as an option or the only health insurance plan available to employees. Sometimes, individuals and families purchasing health insurance on their own can only find affordable health insurance if they choose a policy with a high deductible.

Some, but not all, of the newer health insurance policies with high deductibles may qualify you for a relatively new type of financial account called a "health savings account" or "HSA." An HSA offers a way to put aside money to pay for routine medical expenses and help you save money on taxes. HSAs are designed to fill in the gaps for insurance policies that cover larger medical bills.