What is a Health Savings Account (HSA)?

An HSA works like an IRA. You deposit money tax-free and it grows tax-free until you use it. HSAs are individually owned accounts that allow you to set aside pre-tax dollars for medical expenses. Interest or dividends accumulate tax-free; and payment of qualified medical expenses has no additional tax consequences. You decide how to invest and grow your HSA.

To open an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). Use the money in your HSA to pay for the plan's deductible, co-insurance, and other non-covered eligible expenses. Once your deductible is met, the HDHP kicks in to pay for major health costs. Even if an HDHP no longer covers you, your account remains active and you can use the remaining balance for medical expenses, but you can no longer make contributions. The assets in the HSA account always belongs to you. Funds remain in the account from year to year unless they are used.

An HSA is required to be set up with a qualified custodian or trustee. Discovery Benefits custodian is Healthcare Bank.

For more information concerning Health Savings Accounts please refer to our HSA Resource Guide .

If you have any questions, please contact Participant Services at 866-451-3399 or via email at customerservice@discoverybenefits.com.

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