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Take control of your health care spending with an HSA

Put your money in a savings account for medical expenses.

A Health Savings Account (HSA) is a great way to save money for qualified medical expenses. You decide how and when to use the money, and you get tax benefits.

How HSAs work

What's an HSA?

An HSA is a special savings account for health-related spending. You or your employer can deposit money into it, tax free. This means you don't have to pay income tax on what you contribute each year (up to a limit). You can then use the money in your HSA for medical expenses.

HSAs work together with high-deductible health insurance policies. With this type of insurance, you pay a lower premium each month to keep your coverage. The tradeoff is a higher deductible, which is the amount you pay each year before your insurance pays.

Here's how it all works:

  • You and/or your employer contribute tax-free money to your HSA.
  • You use the money in your HSA to pay for approved medical and dental costs.
  • You pay 100 percent of covered costs until you've met your deductible. One important exception: Your plan pays for all preventive care.
  • After you meet your deductible, your insurance starts to pay. You'll still have some costs after you meet your deductible. Coinsurance (a percentage of the charges for a health care service that you pay) may apply.
  • You'll have a yearly out-of-pocket limit. Once you reached this limit in payments, the plan will pay 100 percent of covered costs.
  • Unspent money stays in your HSA, year after year. You decide when and how to use it.


Who's eligible for an HSA?

To be eligible to contribute to an HSA, you must:

  • Be covered by a qualified high-deductible health insurance plan
  • Have no other health coverage
  • Not be enrolled in Medicare
  • Not be listed as another person's dependent for tax purposes

Are there any exceptions to these eligibility rules?

Yes. While you can't have health insurance outside of your high-deductible plan, you can be insured for accidents, dental care, disability, long-term care, and vision care. Workers' compensation, specified disease, and fixed indemnity coverage is also permitted.

How much can I contribute to my HSA?

Check out the table below for 2022 amounts and limits. Keep in mind we're not qualified tax advisors. This is a high-level guide and not intended as tax or legal advice. Check with a tax professional for advice that's specific to you.

 2022 HSA amounts and limits


Minimum deductible


Maximum out-of-pocket


Contribution limit


55+ contribution*



Minimum deductible


Maximum out-of-pocket


Contribution limit


55+ contribution*


* Catch-up contributions are allowed. This means people 55 and older can contribute more than the limit. Catch-up contributions can be made at any time during the year in which the HSA participant turns 55.


Do I have to have an HSA paired with my high-deductible health plan?

No. You need a high-deductible plan to have an HSA. But you don't need an HSA to have a high deductible plan. People pair them because it's a good way to set aside tax-free money knowing that it can be used to pay medical expenses (including paying the high deductible) if needed.

Opening an account

How do I open an HSA?

First, enroll in a high-deductible health insurance plan. Then find a qualified HSA administrator. This is a financial institution that manages HSAs. Like a bank (but for HSAs specifically) it'll hold your money in a secure account until you need it. Our preferred HSA administrator, Medsurety, has helpful information and next steps available online.

Visit Medsurety

Qualified expenses

How can I spend the money in my HSA?

You can use it for:

  • Deductible and coinsurance payments
  • Routine health care like office visits, X-rays, and lab work
  • Hospital expenses like surgery, room and board, and more
  • Dental care such as cleanings, fillings, and crowns
  • Vision care such as eye exams, glasses, and contacts
  • Prescriptions
  • Eligible over-the-counter items, such as:
    • First aid dressings and supplies like bandages and rubbing alcohol
    • Contact lens solutions and supplies
    • Diagnostic products like thermometers, blood pressure monitors, and cholesterol testing supplies
    • Insulin and diabetic supplies

You can find a full list of HSA eligible expenses on the IRS website in IRS Publication 502.

Want to know more?

Find out more about coverage, costs, and other insurance basics.

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