Health Savings Account
A health savings account or HSA is an account established for those people with an eligible High Deductible Health Plan (HDHP) for the purpose of paying qualified medical expenses.
In order for an individual to be eligible for an HSA, the following items must be determined:
- Must have a health insurance plan
- The insurance plan must be an HDHP
- The HDHP must be eligible for an HSA
- Account owner isn’t eligible to be claimed on another’s tax return
- Must be under age 65 or not participating in Medicare
HSA accounts have several advantages, they are designed to supplement large deductible insurance plans and their contributions and earnings can grow year over year.