Health Savings Accounts
Health savings accounts save funds for you to put towards future health expenses. Savings accounts allow you to pay for current health expenses while also saving – on a tax-free basis – for future qualified medical and retiree health expenses. These savings are tax-free dollars that you may or may not have been otherwise able to deduct.
If you are currently covered by a High Deductible Health Plan (HDHP), then you are eligible to set-up a health savings account. The money in the health savings account is used to pay for any “qualified medical expense” permitted under federal tax law. This includes most medical care and services, dental and vision care, and over-the-counter drugs (such as aspirin).