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Learn About Health Savings Accounts


Health savings accounts (HSAs) are the fastest-growing type of health account. Why? Because they put your health care spending in your own hands. 

Think of an HSA as a special savings account for medical expenses. You decide how and when to use it on eligible medical expenses and receive federal tax benefits at the same time.


An HSA is a special tax-advantaged savings account for qualified medical expenses. Unused HSA dollars roll over from year to year, making HSAs a convenient and easy way to save and invest for future medical expenses. You own you HSA at all times and can take it with you when you change medical plans, change jobs or retire.

To be eligible to set up an HSA and to make contributions, you must be covered by a qualified high-deductible health plan, or HDHP.

Learn more >


Are you eligible?

To be eligible to contribute to an HSA, you must be covered by a qualified high-deductible health plan (HDHP) and have no other first-dollar coverage (insurance that provides payment for the full loss up to the insured amount with no deductibles).

Who can have an HSA?

You must be:

  • Covered by a qualified high deductible health insurance plan
  • Not covered under other health insurance
  • Not enrolled in Medicare
  • Not another person's dependent for tax purposes

Exceptions: Other health insurance does not include coverage for the following: accidents, dental care, disability, long-term care and vision care. Workers' compensation, specified disease and fixed indemnity coverage is permitted.

How much can I contribute to my HSA?

Use the table below to view 2021 amounts and limits for single and family coverage.

   Minimum Deductible  Maximum Out of Pocket Contribution Limit 55+ Contribution*
 Single $1,400 $7,000 $3,600 $1,000
 Family $2,800 $14,000 $7,200 $1,000

*Catch-up contributions are allowed for those older than 55 years of age ($1,000 in 2020). Catch-up contributions can be made at any time during the year in which the HSA participant turns 55.


It is not mandatory to have an HSA paired with your high-deductible health plan; however, it is a great benefit for you.

Some of the benefits are:

  • Make tax deductible contributions
  • Tax-free interest earnings
  • You may be able to invest your HSA funds and the earnings grow tax free
  • Unused HSA funds remain with you year after year

How it works

Your HSA allows you to save in a tax-advantaged way to pay for qualified short- and long-term medical expenses. It complements your high deductible health plan, giving you an additional method to save specifically for health care costs.

Opening an Account

Once you're enrolled in your HSA-compatible plan, visit our preferred HSA administrator, Medsurety, to learn more. Or, use any other qualified HSA vendor.

Register online at Medsurety

Qualified Expenses

You can use your HSA dollars to pay for:

  • Deductible and coinsurance (the portions of health care bills you pay)
  • Routine health care, such as office visits, X-rays, lab work
  • Hospital expenses like room and board, surgery
  • Medications: prescription and over the counter drugs when prescribed by a physician
  • Dental care, such as cleanings, fillings, crowns
  • Vision care, such as eye exams, glasses and contacts
  • Eligible over the counter items, such as:
    • First aid dressings and supplies – bandages and rubbing alcohol
    • Contact lens solutions and supplies
    • Diagnostic products like thermometers, blood pressure monitors, cholesterol testing
    • Insulin and diabetic supplies

A full list of HSA eligible expenses is available on the IRS website in IRS Publication 502.

Medica and its employees are not qualified tax advisors. This information is provided only as a high-level guide and is not intended as tax or legal advice.

Date: 3/25/2023 5:35:26 PM Version: 4.0.30319.42000 Machine Name: PWIM4-CDWEB01