What is an HSA plan?

An HSA plan stands for “Health Savings Account” and typically is associated with “high deductible” medical plans. HSA plans usually have lower premiums than standard “co-pay” types of plans as the insured normally pays the first dollar amounts up to the “high deductible”.

The high deductible is currently around $2500 to $5000 for individuals and can be around $10,000 for families. Either the plan will pay %100 after the deductible is met or an 80/20 split with the twenty percent being the insured’s responsibility.

HSA plans normally are good for younger and healthier people who don’t visit the doctor often as the money they put into their HSA is building interest and is tax free up to the annual limit. Thus it becomes a good savings plan for medical emergencies. Some HSA medical plans will include “well visits” which is an added benefit.

Like anything else it is best to shop around and compare different carriers if it is not part of your employment benefits.

Category: Uncategorized