There are several advantages to opening a Health Savings Account.
Your high deductible insurance and HSA protect you against high or unexpected medical bills.
You should be able to lower your health insurance premiums by switching to health insurance coverage with a higher deductible.
You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs, such as:
Health insurance / medical expenses if unemployed
Medical expenses after retirement (before Medicare)
Out-of-pocket expenses when covered by Medicare
Long-term care expenses and insurance
You can save the money in your account for future medical expenses and grow your account through investment earnings.
You make all the decisions about:
How much money you put into the account
Whether to save the account for future expenses or pay current medical expenses
Which medical expenses to pay from the account
Which company will hold the account
Whether to invest any of the money in the account
Which investments to make
Accounts are completely portable, meaning you can keep your HSA even if you:
Change your medical coverage
Move to another State
Change your marital status
Funds remain in the account from year to year, just like an IRA. There is no “use it or lose it” rules for HSAs.
An HSA provides you triple tax savings
(1) Tax deductions when you contribute to your account
(2) Tax-free earnings through investment
(3) Tax-free withdrawals for qualified medical expenses