What is HSA and HPN Plans?

Check eligibility on the go — browse 7,000+ HSA-eligible products in the free app.

What HSAs and HPNs are

Health Savings Account (HSA) and High Deductible Health Plans (HPN) are valuable tools for managing healthcare costs and saving for the future.

An HSA is a tax-advantaged account that allows individuals to save money for medical expenses on a pre-tax basis. It must be paired with a high deductible health plan, commonly known as an HPN. An HPN typically has lower monthly premiums but higher deductibles compared to traditional health insurance plans.

Key features and plan tradeoffs

Here are some key points about HSA and HPN plans:

• HSA contributions are tax-deductible and can be used to pay for qualified medical expenses.
• Funds in an HSA can be invested and grow tax-free over time.
• Unused HSA funds roll over from year to year, unlike Flexible Spending Accounts (FSAs).
• HPN plans are designed to cover major healthcare expenses after the deductible has been met.
• HPN plans often have lower premiums, making them an attractive option for healthy individuals or those who don't visit the doctor frequently.

When considering an HSA and HPN plan, it's important to weigh the lower premiums against the higher out-of-pocket costs. These plans can be a smart financial choice for individuals who want more control over their healthcare spending and savings.

Why understanding matters

Understanding Health Savings Accounts (HSA) and High Deductible Health Plans (HPN) can empower you to take control of your financial health and wellbeing.