Health Savings Account HSA

The definition of Health Savings Account HSA, and how it fits into the Zenefits Health Insurance Marketplace

What is an Health Savings Account (HSA)

A health savings account, also known as an HSA, is an employee benefit program that lets employees contribute pre-tax money through payroll deductions to pay for certain health care expenses.

HSAs are available only with high-deductible health plans. Employers may make contributions to their employees’ HSAs, and will not be required to pay wage taxes on those contributions.

 

How does a Health Savings Account (HSA) Work?

Individuals that enroll in a Health Savings Account can use any funds allocated to the account, for eligible medical expenses. Often, the funds in a HSA can also be invested, which provides the complete triple-tax advantage.