About Health Savings Accounts
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About Health Savings Accounts
Health savings accounts (HSAs) were created by federal legislation enacted in 2003. HSAs are now available to any individual or family with HSA-qualified insurance (i.e., high-deductible health plan). There are no limitations on who may have an HSA based on income or employment status. However, dependent children cannot have their own HSA accounts but may be covered by the HSAs of their parents.
Things To Know
- HSAs let you save money for medical expenses while saving on taxes.
- HSAs can be used to save up funds for your deductible.
Saving money for your deductible
Most of us know that we can lower our premiums on our auto or homeowners insurance by raising our policy deductible. But few of us actually put the savings into a "rainy day" fund in case we actually have to pay our deductible when we have a claim. HSAs offer a way of putting money into that "rainy day" fund for health care. The tax benefits that come with the HSA make the opportunity that much better.
Health savings accounts do not solve all of the problems with obtaining health insurance. However, for many individuals and families, HSAs can make health insurance more affordable while providing an alternative way of financing their medical coverage.