Health Savings Account

A Health Savings Account, commonly abbreviated as HSA, is a U.S. tax-advantaged savings account available to individuals enrolled in a qualifying high-deductible health insurance plan, allowing them to set aside pre-tax funds specifically to pay for eligible medical, dental, and vision expenses. Contributions to an HSA reduce an individual's taxable income, and unlike some other tax-advantaged health accounts, unused HSA funds roll over from year to year rather than being forfeited. Employers often support HSAs as part of their benefits offering by allowing employees to make contributions through payroll deductions and, in many cases, contributing additional employer funds directly into the employee's account as an added benefit. Because HSA funds belong to the individual account holder and remain available even if they change jobs or health plans, HSAs are generally viewed as a portable, long-term savings vehicle rather than a use-it-or-lose-it benefit. HSAs are a U.S.-specific benefit tied closely to the American health insurance system and tax code, meaning companies with international employees generally cannot offer an equivalent account in most other countries, where healthcare financing and coverage typically operate through different structures, often involving national health systems rather than employer-sponsored high-deductible insurance plans.