Skip to main content

Health Savings Account (HSA)

Insurance Glossary

A tax-advantaged account for medical expenses that a person may contribute to only while covered by a qualifying high deductible health plan. Contributions are deductible or made pre-tax, growth and qualified withdrawals are untaxed, unused balances roll over year to year, and the account stays with the owner after a change of job or plan. The IRS sets the annual contribution limits and adjusts them for inflation, withdrawals for non-qualified expenses are taxed and can carry a penalty, and contributions have to stop once the owner enrolls in Medicare.

This content is for general informational purposes only and is not insurance, legal, or financial advice. Coverage, exclusions, eligibility, and pricing vary by insurer, by policy, and by state, and only the policy documents control what is covered. Always confirm the details of any coverage with a licensed insurance agent or the issuing carrier before you buy.