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Health and Benefits Topics
The HSA plan advantage: Health Savings Accounts (HSAs)
With a HSA benefit plan you can enjoy quality, affordable health care coverage and the chance to take control of your future health care spending. Health Savings Accounts are special tax-exempt savings account dedicated to your health care expenses.
As you contribute to the account, your money grows tax deferred. And as long as you use the account to pay for qualified medical expenses, your contributions are deducted from your gross income at tax time, saving you money.
How it works
You can contribute up to 100% of your plan's deductible amount to a Health Savings Account each year - or as determined by the IRS annually. (Contribution limits are prorated for the number of months the plan is in force. Please consult your tax advisor for specific tax information.)
For instance, you can use your HSA to:
- Pay your health plan deductible, coinsurance and other qualifying health care expenses.
- Invest in mutual funds or other options - with any interest or other earnings accumulating tax-free
- Or, let your account build up through savings account interest. Any unused funds in your Health Savings Account are yours to keep and will carry over from year-to-year.