Health Savings Account (HSA)

Insurance term

Definition

A tax-advantaged savings account available to people enrolled in a High Deductible Health Plan (HDHP). Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. HSA funds roll over year to year and are portable between employers.

Related Terms

  • Deductible

    The amount you must pay out of pocket for covered healthcare services before you...

  • Copay

    A fixed amount you pay for a covered healthcare service after you have met your ...

  • Coinsurance

    Your share of the costs of a covered healthcare service, calculated as a percent...

  • Out-of-Pocket Maximum

    The most you have to pay for covered services in a plan year. After you spend th...

  • Premium

    The amount you pay each month for your health insurance coverage, regardless of ...

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