what is an hsa plan
health savings account (HSA) DEFINITION: A health savings account (HSA) is a tax-advantaged account where money can be set aside to pay for future medical expenses. HSAs can be offered as an employment benefit (money can be contributed by the employee and/or the employer) or they can be set up by someone who purchases individual health insurance. In order to contribute to an HSA, the account owner has to have an HSA-qualified high-deductible health plan in place. The IRS sets limits on the minimum and maximum out-of-pocket levels for the HDHP and also has contribution limits for HSAs.