The HSA Advantage

HSAs are designed to give consumers greater choice and control when it comes to managing their healthcare expenses, in addition to helping consumers save money through tax benefits and reduced health insurance premiums. The following are some of the key benefits of an HSA solution.

• Portability. Unlike an FSA or HRA, HSAs are owned by the individual, and not by an employer. Funds in an HSA belong to you for life even if you switch jobs, change insurance plans, or retire.


• Savings Vehicle. With an HSA, unused funds roll over year-to-year, earning interest tax-free. There is no "use it or lose" rule, because the money belongs to the individual who owns the account. As a result, an HSA is more than just a tool to manage healthcare expenses; it's also a valuable savings vehicle.


• Tax Advantages. HSAs provide triple-tax savings through tax-deductible contributions (even for individuals who do not itemize deductions); tax-free earnings on investments; and tax-free withdrawals for qualified medical expenses.


• Choice and Control. Your HSA belongs to you; so you can choose when to contribute to your account, how to invest your contributions, and when and how to use your HSA funds. You do not have to get distributions pre-qualified or approved by an employer, and you always have access to the funds in your HSA.


• Flexibility. Funds in your HSA can be used to pay for a variety of medical expenses and treatment options, including many not typically covered by a traditional health insurance plan. For example, you can withdraw money tax-free to pay for contact lenses, prescription medicines, certain over-the-counter drugs, chiropractor treatment, eyeglasses, and dental treatment.