Health Savings Accounts (HSA)

A Health Savings Account (HSA) is a tax-advantaged medical spending and saving account. HSAs work in conjunction with an HSA-eligible health plan that meets IRS guidelines. Due to recent federal legislation, more of our health plans on the exchange are eligible for Health Savings Account (HSA) contributions starting January 1, 2026. 

HSAs have a unique a triple tax benefit that allows you to contribute to the account tax free, spend the dollars in the account tax free, and earn interest on the money in the HSA tax free. The money in your HSA rolls over year after year and is yours to keep, even if you retire or change jobs. You don’t pay any taxes on the money you put in or take out of your HSA, as long as you use it for medical expenses as defined by the IRS.

Top benefits of an HSA:

• Money goes into your HSA before your state or federal taxes are deducted. This brings down your taxable income and helps you save on medical expenses.
• There’s no “use it or lose it” rule: the money in your HSA belongs to you, even if you change jobs or retire.
• The money in your HSA can immediately start earning interest tax-free.
• You can use your HSA dollars for eligible health-related expenses, allowing you to purchase these services tax free.
• Your HSA can help you even out your medical expense over time: Since you manage your funds, you can save HSA money when you’re healthy so it’s ready when you need it.