Health Savings Account (HSA)

In combination with a High Deductible Health Plan, the HSA gives members a way to pay for qualified health care expenses and grow their savings for future health care needs.

Employees and their employers can contribute tax-free money to an HSA.

HSA Advantages

Opportunity to build savings

Unlike a Flexible Spending Account (FSA), unused money stays in the member's account from year to year and earns tax-free interest. The HSA also allows members to invest their funds.

Tax-free contributions and earnings

Members don't pay federal taxes on contributions or earnings, as long as the money is used for qualified health care expenses.

Portability

Funds belong to the member, so the member can keep the account if he or she changes jobs or retires. This differs from a Personal Care Account (PCA), which is sponsored by the employer.

Convenience

The HumanaAccess^SM Visa™ Debit Card makes it easy to pay for qualified expenses, such as doctors' office visits, lab tests and prescriptions. Simply process the HumanaAccess Card just like a regular Visa. Swipe it and select "credit."

Health Savings Accounts Gaining Popularity

According to America's Health Insurance Plans (AHIP) January 2006 Census, participation in HSA-qualified deductible health plans tripled from March 2005 to January 2006, with nearly 3.2 million individuals enrolled. Forrester Research reports that by 2012 more than 18.5 million people will be enrolled in HSAs.