A Health Savings Account (HSA) is a special kind of savings account for those who have a High Deductible Health Plan (HDHP). Using this account, you can contribute pre-tax dollars to be used for qualified medical expenses.
So what does this actually mean? Because you can put pre-tax dollars into an HSA , depending on how much healthcare you use in a year, you may be able to save on your total healthcare costs because you can pay those expenses with tax-free money.
Keep reading to learn more about how HSAs work, what they can be used for, how you get reimbursed for your expenses, and more.
The first step to using an HSA is to enroll in a HDHP, and after your enrollment, you’ll be able to get an HSA account. These kinds of plans — some of which are available on the Marketplace — typically only cover preventive care before your annual deductible is met. This means the costs for all your health care that isn’t preventive (preventive care includes things like annual wellness check-ups and vaccinations) will be paid in full out-of-pocket up until you’ve met your deductible. Depending on how much healthcare you access in a year, this can add up fast.
You can enroll in an HDHP at HealthCare.gov or at HealthSherpa—enter your zip code below to see plans and prices: