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Health Savings Accounts
The only product you purchase with an HSA is a High Deductible Health Plan (HDHP), an inexpensive plan that will cover you should your medical expenses exceed the funds you have in your HSA.
An HSA is a tax-advantaged medical savings account available to taxpayers in the United States. In 2004, Congress created Health Savings Accounts (HSAs) with the intention of putting the brakes on runaway health care costs. The concept was simple: Get people to start thinking about health care expenses the same way they think about other goods and services they buy.
The HAS (health savings account) is a health plan consisting of a high deductible health plan (HDHP) and a tax-free claims expense reimbursement and tax-deferred savings account. This acount mya be employer or employee funded. The HSA is the permanent expansion of the former medical savings plan (MSA), with several very meaningful enhancements. Now everyone can take advantage of the savings inherent in this new form of medical IRA.