A Health Savings Account (HSA) is an individual, tax-advantaged savings account that allows employees to set aside pre-tax dollars to pay for qualified medical, dental, and vision expenses, helping lower overall out-of-pocket healthcare costs.
Key HSA Highlights
- Tax-Advantaged Savings: Contributions are made on a pre-tax basis through payroll deduction or personal contribution. Unused funds earn interest or investment returns tax-free and roll over automatically year after year—funds are never lost at the end of the plan year.
- Eligible Expenses: HSA funds can be used toward deductibles, copayments, coinsurance, prescription drugs, and other qualifying medical, dental, or vision expenses.
- Note: HSA funds generally cannot be used to pay insurance premiums.
- Eligibility Requirements: To contribute to an HSA, an employee must be enrolled in an HSA-eligible High Deductible Health Plan (HDHP)—a plan design that generally covers only ACA-mandated preventive care before the deductible is met.
- Account Providers: HSAs are personal financial accounts owned by the employee and offered through banks, credit unions, or financial institutions (such as Option, Fidelity, or HSA Bank).
Need Help Managing Plan HSAs?
If you are a plan administrator with questions about HSA setup, employer contribution management, or employee eligibility, reach out to our dedicated Admin Support team:
- Email: admins@sanabenefits.com
- Phone: (940) 340-4488
- Hours: Monday – Friday, 9:00 AM – 4:00 PM CST