Health Savings Accounts - Benefits and Advantages

HSA accounts encourage savings for future medical expenses
- Non-covered services under future coverage
- When employer-sponsored coverage is lost during periods of unemployment

Other coverage
- Medical expenses after retirement (before Medicare eligibility)
- Insurance coverage after Medicare elgibility (except Medigap)
- Out-of-pocket expenses for Medicare
- Long-term care expenses

COBRA continuation coverage

Accounts are owned by the individual (not an employer). The individual decides:
- How much to contribute
- How much to use for medical expenses
- Which medical expenses to pay from the account
- Whether to pay for medical expenses from the account or save the account for future use
- Which company will hold the account
- What type of investments to grow account

Accounts are completely portable, regardless of:
- Whether the individual is employed or not
- Which employer the individual works for
- Which state an individual moves to
- Age or marital status changes
- Future medical coverage

No "use it or lose it rules" like Flexible Spending Arrangements (FSAs)
- Unspent balances in accounts remain in the account until spent on medical care
- Encourages account holders to spend their funds more wisely on their medical care
- Encourages account holders to shop around for the best value for the health care dollars

HDHP premiums should be cheaper than health insurance with traditional deductibles

Favorable tax treatment
- Contributions
- Disbursements
- Investment earnings