Health Savings Account (HSA)
A tax-advantaged savings account paired with a high-deductible health plan, used to pay for qualified medical expenses.
Updated
A Health Savings Account (HSA) is a tax-advantaged account that allows individuals enrolled in a qualifying high-deductible health plan (HDHP) to set aside pre-tax money to pay for qualified medical expenses.
HSA funds roll over from year to year and remain with the individual, even if they change employers or health plans.
In practice
HSAs are funded by the patient, not the provider, and are typically accessed via a debit card or reimbursement. Billing teams treat HSA payments like any other patient payment; the tax treatment of the HSA is between the patient and the account administrator.
Commonly confused with
- Flexible Spending Account (FSA): An FSA is typically subject to use-it-or-lose-it rules each plan year, whereas HSA funds roll over indefinitely.