It’s hard to make any predictions about the cost of health care these days. You can, however, count on a Health Savings Account (HSA) to make them easier to manage, with the real possibility of some tax advantages to boot.
You can use money from your HSA tax-free if it’s used to pay for qualified medical expenses as defined by federal tax law. This includes most medical, dental and vision care for you and for your dependents.
To be eligible for a HSA, you must be covered by a high deductible health plan (HDHP). A HDHP is considered HSA-compatible if it satisfies annual deductible and out-of-pocket expense limits. Check with your health insurance provider to see if your plan qualifies.
If you qualify, a HSA provides several benefits: