Health Savings Account (HSA)

A Health Savings Account (HSA) is an  employee owned tax-advantaged bank account.  An HSA allows you to pay for eligible medical, dental and vision expenses with tax-free dollars. To qualify for an HSA, you must have an HSA compatible high-deductible health plan (HDHP) and not be  covered by any other prohibited health coverage, i.e., certain FSAs or HRAs.  Unlike an FSA, there is no “use-or-lose” stipulation with an HSA, so your funds will roll over from year to year. An HSA also has long-term investment opportunities with tax benefits on contributions, earnings and distributions.

If you have an HSA, you may use your funds for the following: 

  • Doctor and hospital visits
  • Medical equipment
  • Dental care 
  • Vision Care
  • Prescription medications
  • Premiums for long-term care insurance
  • COBRA premiums
  • Premiums for coverage while receiving unemployment compensation
  • Premiums for individuals over age 65, such as retirement health benefits and Medicare