What is an HSA?
HSAs have two parts:
- A high deductible health plan, generally less expensive than comparable high deductible plans
- An HSA fund that functions similarly to an IRA account
Contributions to the fund are tax deductible to a set limit. The monies in the fund can be used 100% tax free to cover qualified medical expenses such as prescriptions, doctor visits, and dental and vision deductibles. More information can be found at the U.S. Department of the Treasury web site description on Health Savings Accounts