How Does an Employer HSA Work?

Health Savings Accounts (HSAs) provided by employers are a valuable benefit offered to employees to help manage healthcare costs. Here's how an employer HSA works:

When you enroll in a high deductible health plan (HDHP) offered by your employer, you may be eligible to open an HSA. Contributions to this account are made with pre-tax dollars, reducing your taxable income and saving you money.

Here are the key points:

• An employer may contribute to your HSA, which can help boost your savings for medical expenses.
• You can also contribute to your HSA through automatic paycheck deductions, making it a convenient way to save.
• Funds in your HSA rollover year after year, so you don't have to worry about losing unused money.
• You can use the money in your HSA to pay for qualified medical expenses, such as doctor visits, prescriptions, and more.
• Employer HSAs are portable, meaning you can take your account with you if you change jobs.

Understanding how an employer Health Savings Account (HSA) works can empower you to take control of your healthcare costs. With the rise of high deductible health plans (HDHPs), HSAs have become an invaluable resource for employees looking to save on medical expenses.