What is a Health Savings Account?

By: Víctor M. Arroyo
President, VAGIB Corp.

HSAs
A health savings account (HSA) is a tax-exempt trust or custodial account that you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur.
HSAs were signed into law by President Bush on December 8, 2003.

What are the benefits of an HSA?

• Your high deductible insurance and HSA protect you against high or unexpected medical bills.
• You should be able to lower your health insurance premiums by switching to health insurance coverage with a higher deductible.
• You can use the funds in your account to pay for current medical expenses, including expenses that your insurance may not cover, or save the money in your account for future needs, such as:  Health insurance or medical expenses if unemployed, Medical expenses after retirement (before Medicare), Out-of-pocket expenses when covered by Medicare, Long-term care expenses and insurance.
• You can save the money in your account for future medical expenses and grow your account through investment earnings.
• You make all the decisions regarding:

 

 

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Read the entire story at Business Puerto Rico magazine.