HSA Comparison
An HSA combines high deductible health insurance with a tax-favored savings account. Money in the savings account helps pay the deductible. Once the deductible is met, the insurance starts paying. Money left in the savings account earns interest and is yours to keep.
How it Works
You obtain coverage under a qualified health insurance plan with a minimum deductible of $1,100 for singles and $2,000 for families. Each year you’re allowed to save up to $2,850 for singles and $5,650 for families in 2008. Older Americans can save even more! You use the savings account to pay for your lower-dollar medical expenses, or those that aren’t covered by the health plan. Once you meet the deductible, the health insurance covers your medical expenses as defined in the policy.
