Health Savings Alliance: Get the Most from Your HSA

Whether you're one of the more than eight million people already using a health savings account or you're simply interested in learning more, The Health Savings Alliance is a resource for you to stay informed and engaged on issues affecting HSAs and HSA health plans.

Control of Your Health Care and Your Money

For millions of Americans, health savings accounts, when paired with an HSA health plan, provide comprehensive health care coverage at a low cost and a smart way to save money.

When you or your employer contributes to your HSA, the funds are tax-deductible, similar to an IRA or 401-K savings plan. You can use the money in your HSA to pay for health expenses and any funds remaining at the end of the year will automatically roll-over, allowing you to save for future health expenses. And, like any financial account, money in the HSA can earn interest.

The HSA health plan is like any other health insurance which provides coverage for medical costs like physician office visits, hospitalization, and prescription drugs. Most HSA plans provide incentives for you to stay engaged in your overall health and well-being and almost all HSA plans offered by employers offer coverage for preventive services — such as routine physicals, medical tests, immunizations, and well-baby care — before reaching the plan deductible.

Portability and Financial Security

HSAs offer the advantage of portability — if you change jobs or your employment status changes, you keep the money in your HSA and continue using it to pay for your health care.

In addition to providing tax benefits, HSAs protect against catastrophic health care expenses by limiting the total out-of-pocket costs that you may incur. By law, the annual limits on costs for 2010 are $5,950 for individuals or $11,900 for families — and HSA plans sold in the market today typically have much lower out-of-pocket expense limits — averaging $3,400 for individuals and $6,600 for families.

An Effective Health Care Solution

HSAs and HSA health plans play a vital role in providing health care coverage to millions of Americans who might otherwise be uninsured. A study by America's Health Insurance Plans found that 27% of those buying HSA health plans in the individual market previously did not have health insurance.

As health care costs continue to rise, HSAs are one way to expand coverage options while helping to control costs. For some small businesses, the lower-premium HSA health plans have allowed them to maintain coverage for their employees.

Health savings accounts encourage individuals to take a more active role in determining how they receive health care by choosing how to spend their health care dollars. When health care decisions are made by patients based on quality, effectiveness, and cost, money is being spent more efficiently. And the focus on preventive care and getting patients more engaged in their health also contributes to lower health care costs over time.

More Information

The following studies provide in-depth information on health savings accounts and how they are being used across the country:

Thousands of people from all walks of life are sharing with Congress — through letters, phone calls and emails — their personal stories about how they and their family have benefited from the affordability and security of having an HSA.

Share your story and you could be featured here.

While on a family vacation 3 years ago, my husband and I were awakened to, "Mom, Dad, Cari's not breathing!" Our 11 year old always healthy daughter, suffered a cardiac arrest. Fortunately we were covered by Golden Rule and had an HSA account.

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