Health Savings Account (HSA)

Posted in Human Resource Terms, Total Reads: 1905
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Definition: Health Savings Account (HSA)

High Deductible Health Plan (HDHP): This Health insurance plan is a basic requirement for a person to be covered under Health Savings Account (HSA). HDHP is a low premium and high deductible plan. Deductible means the proportion of expense to be paid by the insurance company for the claim.

 

Basic Requirements for HSA:

-          Individual must be enrolled for HDHP before being covered under HAS

-          The person should not be listed as a dependent on  other person’s returns

-          Person should not be enrolled under other healthcare plans like Medicare

Health Savings Account (HSA): Some of the features of HSA are:

-          Owned by the individual, unlike the other health plans, which are owned by the employer

-          Saves medical expenses which are not covered under HDHP

-          Comprises tax deductible money, i.e. It grows tax free every  year

-          Employers of all size can opt for HAS, unlike MSA (Medical Savings Account)

-          HSA can qualify for some medical expenses which are not covered in other health plans

 

Hence, this concludes the definition of Health Savings Account (HSA) along with its overview.

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