A Health Savings Account (HSA) is a pre-tax benefit that allows members to set aside money before taxes to be applied towards qualified medical expenses. While HSA’s don’t usually apply towards premiums, the money can be used to pay for coinsurance, copayments, deductibles, and several other medical expenses. The purpose of an HSA as a pre-tax benefit is to lower overall health care costs. It is important to note that only members with a High Deductible Health Plan (HDHP) qualify for an HSA.
See the chart below to see a side-by-side comparison of the HSA limits from 2019 and 2020:
