Essay On Health Savings Account

797 Words4 Pages
A Health Savings Account or HSA is becoming an increasingly popular tool for many people to save money, reduce their annual tax burden, and pay for their medical expenses. Like with an IRA, individuals wishing to enroll in a HSA programs can deposit a maximum amount of money into their a HSAs each year and then invest that money into high interest-yielding vehicles, such as stocks and bonds.

However, while HSAs do provide an excellent method of saving money and developing a strong savings account, there are some requirements that participants will have to be comfortable with in order to make the most out of their a HSA. For most people, HSAs are wise financial moves that will help to protect their money while also developing a nest egg to
…show more content…
Therefore, a Health Savings Account participant can grow his or her savings tax-free for as long as he or she wants. The savings will only be taxed if they are withdrawn to pay for an non-qualifying expense.

Increased control over health condition

Another benefit of enrolling in a Health Savings Account is that participants will have increased control over how they spend their medical dollars. Funds from a Health Savings Account are limited and fully controlled by the account owner. Therefore, participants tend to pay close attention to which medical services they receive and what those prices are. As participants shop around for the best prices, they are in better control over their medical expenses and services.

However, if an individual is prone to desiring many medical tests and services performed and would rather not think about the price of the service or the necessity of the service, the individual may end up paying more money than he or she would like because of the high deductible. Therefore, a Health Savings Account is often more desirable for individuals who are discriminatory when it comes to their health care expenses and
Open Document