What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a type of account that allows North Carolinians to save money, tax-free, to pay for qualified medical expenses. HSA funds can be used to cover out-of-pocket expenses like deductibles, copays, and coinsurance. Funds in an HSA can also be used for other eligible medical expenses such as prescription drugs, vision care, and dental care. HSAs are often offered with high-deductible health plans, which have lower premiums than traditional health plans. HSAs are available to individuals who are enrolled in high-deductible health plans, as well as to employees of employers who offer these plans. Contributions to an HSA can be made by the individual or employer, and in some cases, by family members. The money in an HSA is maintained in the account and can be used to pay for eligible medical expenses whenever they arise. HSA funds roll over each year, and can be used to pay medical bills at any time. Money in an HSA is also exempt from federal taxes and North Carolina state taxes. HSAs can be a great way to save money for future medical expenses while taking advantage of tax benefits. However, it is important to note that HSAs must be used for qualified medical expenses in order to qualify for tax benefits.

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What is a Health Savings Account (HSA)?

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