A Health Savings Account (HSA) is a type of investment account that was created by Congress and is designed to help you save for future healthcare needs. To be eligible to establish an HSA, you must be enrolled in a qualified High Deductible Health Plan (HDHP).
An HSA will allow you to use tax-deductible dollars to pay for your out-of-pocket and other qualified medical expenses. This account applies to eligible medical expenses paid for you, your spouse and dependents. Funds placed in an HSA account, as well as interest and other investment earnings on your contributions to the account, may continue to grow without taxation over the years.
For additional information, please see:
IRS Publication 969, "Health Savings Accounts and Other Tax-Favored Health Plans".
Note: Account-Based Plans are not available with all Blue Cross and Blue Shield of Alabama plans. Contact your employer to see if these programs are offered as a part of your benefit plan.
For more information on HSAs administered by HealthEquity please visit HealthEquity HSA.