Understanding Health Savings Accounts (HSAs)

1What Is a Health Savings Account?

A health savings account is designed to save money for healthcare expenses. You may keep pretax money in this account and use it later to cover medical costs, such as copayments or deductibles. Doing this may help you save money as the deposit in a health savings account is not taxed. In general, you may think about this account as an option to get a considerable discount on your healthcare expenses. [1]

How a Health Savings Account Works

A health savings account can be offered by an employer with high-deductible health plans or opened separately if you have a qualifying plan. You may decide the amount of money to deposit into this account each year. However, it should not exceed the maximum amount. After registration, you will get checks or a debit card associated with the account balance. The funds can be used for covering healthcare costs, including coinsurance, copays, deductibles, and other qualified expenses. Keep in mind that you cannot pay insurance premiums with a health savings account. [2]

Back

Related Articles

How to Detect Bed Bugs?

Your Health
Bed bugs are a form of insects that would feed on our blood, often during the night. They can be found in many household areas, especially crevices or cracks. Their bites would lead to a couple of health issues,...

10 Best States for Retirement

Featured
Retirement means you do not have to work all day long and have more time to enjoy life. More importantly, you are now not limited to the current location. So why not relocate to a state with better weather...

10 Best Cities For Retirement

Your Health
More and more retired people think about relocating to a new city or state. There are many reasons for this increasing trend, from better tax policies and healthcare systems to personal preferences or family matters. However, it is not...

10 Good Jobs for Retirees

Fitness & Wellness
Retirement is a great time to take a long break after many years of hard work. However, many people still go back to work for a variety of reasons. It can be because they want to make some extra...

10 Reasons Why Taking a Cold Shower

Your Health
Taking a hot shower is a morning routine for many people. But did you know that a cold shower should also be added to your daily routine? Try to reduce the water temperature below 70 degrees Fahrenheit or 20...

Can You Reverse Diabetes with Exercise?

Your Health
What is Diabetes? Diabetes is a common health issue in which levels of glucose increase over time in the bloodstream. Glucose is the main source of energy for the body. A hormone produced by the pancreas called insulin helps process...

What Are Hangover Shakes and Tremors – Causes & Cure

Your Health
What Is a Hangover? A hangover is an unpleasant, but harmless condition that commonly happens a few hours after drinking beer or alcohol. Most people may have dizziness, nausea, vomiting, or headaches. These effects may last for a few hours...

How Sea Moss Can Benefit Your Skin

Your Health
What Is Sea Moss? Sea moss is a form of seaweed or algae. It can be found along the Atlantic coasts, mainly between Europe and North America. There is a variety of colors, such as black, brown, red, purple, yellow,...