Everything Health Insurance

A health savings account usually supplements one’s current insurance coverage, although with some HSAs you don’t have to have insurance coverage. These types of health savings accounts pay for medical expenses that your health insurance coverage typically does not pay for. Depending on the plan you choose, the money in a HSA is deposited either by you or an employer before it is taxed so it’s like paying for out of pocket medical costs tax-free. You and/or an employer put money into your HSA account (the account can be set-up through your employer as a benefit or you set up an account through a private company like an insurance company). Usually, your money sits in the account like it would in a bank account, except the money was placed in there tax-free and will may earn more interest than in a bank account.  When you are in need of using your money, you may be provided a debit card to pay for the expenses automatically or your plan may require you to send them a copy of the receipt and they will reimburse you with the money in your health savings account.