Advantages of a Health Savings Account
Security. Your High Deductible Health Plan (HDHP) and
Health Savings Account (HSA) protect you against high or unexpected medical
bills.
Affordability. Your health insurance premiums should be
lower when you switch to an HDHP.
Flexibility. You can use the funds in your account to
pay for current medical expenses (including those expenses that insurance
does not cover), or you can save the money for future needs:
- Health insurance or medical expenses if unemployed
- Medical expenses after retirement (before Medicare)
- Out-of-pocket expenses when covered by Medicare
- Long-term care expenses and insurance
Control. You make all the decisions about:
- How much money to put into the account
- Whether to save the funds for the future or pay medical expenses now
- Which medical expenses to pay from the account
- Where you will open your HSA
Portability. You keep the HSA (and can continue to use
it), even if you change jobs, change your medical coverage, become unemployed,
move, etc.
Tax Savings. An HSA can give you "triple tax savings"
- Tax deductions when the contribution is made
- Tax-free earnings while the funds are in the HSA
- Tax-free withdrawals for qualified medical expenses
