Questions and Answers

A. A HSA is a medical savings account that allows you to set aside money for current and future medical expenses tax free. There are conditions on obtaining an account. First of all you must be covered by a high deductible plan, you can’t be a dependent on another’s tax return, and also have no other health insurance.

This account can be used to pay for expenses not covered usually like eye glasses, hearing aids etc. All of the expenses paid out of your HSA that are eligible under your high-deductible plan will count towards the deductible. You can make contributions during the year using before tax dollars, earning interest and the end of year balance will rollover, and this enables you to build a reserve for your future health expenses. Funds are kept even when you retire or change plans