A Health Savings Account is a tax-advantaged medical savings account available to individuals who are enrolled in a high-deductible health plan (HDHP). In simpler terms, HSA’s are like personal savings accounts, but the money in them can help pay deductibles and other medical expenses for yourself, your spouse, or your dependent children. Money left in the health savings account earns interest and belongs to you.
What Are Some Advantages of an HSA?
- High Deductible Health Plans typically have lower premiums than other plans, and may help your organization save money on employee benefits costs
- Funds can be used to pay your deductible and other out of pocket expenses
- Contributions can be made by yourself, your employer, and/or a third party (maximum limits are set by the IRS annually)
- The funds are yours – even if you change jobs
HSA + HDHP = Triple Tax benefits
If you’d like to know more about Health Savings Accounts, contact your CalNonprofits Insurance Services Employee Benefits Account Manager for assistance.