An HSA or Health Savings Account is a tax-advantaged spending and savings account that can be used to pay for qualified medical expenses. (It's sometimes anecdotally referred to as a medical 401[k].) It takes two components to create an HSA-based health coverage plan:                                                          

1. An HSA-eligible health plan, often referred to as a high-deductible health plan (HDHP)

                                                                                      2. An HSA

The HSA plan is the insurance component. It provides medical coverage for you and your family in case of emergency, major illness, or high annual health care costs. It has a deductible that's higher than in a traditional insurance plan, but HSA-eligible plans feature significantly lower premiums.

The HSA is funded by pre-tax contributions from you, your employer, or both. In 2011 and 2012, the maximum set by the IRS for an individual is $3,050 amd $3,100, respectively. The maximum contribution for family coverage is $6,150 in 2011 and $6,250 in 2012. You can save this much even if your health plan deductible is lower. The rates are subject to change every year, adjusted for inflation.

Learn more about an HSA in the Resource Center>>

CBMG exclusively uses Health Equity as our HSA provider.