ACA health insurance
What is an HSA, and how does it work?
A health savings account (HSA) is a personal savings account for medical costs. Money goes in tax-free, can grow, and comes out tax-free when you spend it on qualified medical expenses. You need a high-deductible health plan to contribute.
The three tax advantages
- Money you put in is generally tax-deductible, or pre-tax through a paycheck.
- Money in the account can grow without being taxed.
- Money you take out for qualified medical expenses is not taxed.
What makes it yours
The account belongs to you, not your employer or your insurer. It rolls over every year, and it stays with you if you change jobs or plans.
To put money in, you must be covered by a qualifying high-deductible health plan and not be enrolled in Medicare. You can spend the balance on deductibles, copays, prescriptions and many other medical costs.
Have this ready when you call
- Your health plan's name, and whether it says HSA-eligible
- Whether you are enrolled in Medicare
- What you expect to spend on care this year
Common questions
What happens to the money I don't spend?
It stays in the account and keeps rolling over. There is no use-it-or-lose-it deadline.
Can I use it for non-medical costs?
You can, but withdrawals that are not for qualified medical expenses are generally taxed and can carry an additional penalty before age 65.
Who sets the yearly contribution limit?
The IRS, and it changes each year. Check the current limit before you contribute.
Related answers
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Call 855-367-1095 and a licensed agent will go through your situation with you. There is no charge to ask, and no obligation to enroll.
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Information on this site is educational and does not guarantee eligibility, enrollment, pricing, or availability. It is not a recommendation to buy any specific plan or policy.