What is Health Savings Account (HSA)?
Insurance glossary entry on BeCovered.ai for the term "Health Savings Account (HSA)": Triple tax-advantaged account for medical expenses when paired with a qualified HDHP. Scope: plain-language meaning for coverage discussions; confirm definitions on your policy forms.
Triple tax-advantaged account for medical expenses when paired with a qualified HDHP.
Understanding Health Savings Account (HSA)
Contributions are pre-tax (or deductible), growth is tax-free for qualified medical expenses, and withdrawals for qualified expenses are tax-free. HSAs are individually owned, portable, and can invest balances.
Examples
- Paying orthodontics with HSA after HDHP deductible met.
- Investing HSA cash above emergency threshold for long horizon.
Common Questions About Health Savings Account (HSA)
What happens if I lose HDHP eligibility?
You cannot contribute new money but keep and spend existing balances per qualified expense rules.
Can HSAs pay premiums?
Generally not for employer coverage except COBRA/long-term care/limited cases—confirm IRS guidance.
Related Insurance Types
Related Terms
Copay (Copayment)
A fixed amount you pay for a healthcare service at the time of the visit.
Coinsurance
The percentage of costs you share with your insurance company after meeting your deductible.
Deductible
The amount you pay out of pocket before your insurance coverage kicks in.
Out-of-Pocket Maximum
The most you'll pay for covered healthcare services in a plan year, after which insurance pays 100%.