Health Savings Account (HSA)
Definition - What does Health Savings Account (HSA) mean?
A health savings account (HSA) is an account set up for individuals covered under a high-deductible health plan (HDHP). Intended to help pay for medical expenses not covered by the latter, it also offers three tax advantages: deposits are tax deductible, interest earned is tax-free, and withdrawals are also tax-free, provided they are put toward qualified medical expenses.
Insuranceopedia explains Health Savings Account (HSA)
To qualify for an HSA, an individual must have a HDHP and must not be listed as a dependent on another person's tax return or enrolled in Medicare. You or your employer make contributions, which have a maximum annual limit, and the contributions are then invested. You can use the funds to pay for medical expenses that qualify, including dental, vision, and over-the-counter drugs.
- Health Maintenance Organization (HMO)
- Health Reimbursement Arrangement (HRA)
- Qualified High-Deductible Health Plan
- Health Insurance
- Employee Health Benefits
- Least Expensive Alternative Treatment (LEAT)
- Voluntary Employees Beneficiary Association (VEBA)
- Medical Savings Accounts (MSA)
- Preferred Provider Organization (PPO)
- Medical Loss Ratio (MLR)