A: A Health Savings Account (HSA) is a special account owned by an individual where contributions to the account are to pay for current and future medical expenses.

HSAs are used in conjunction with a “High Deductible Health Plan” (HDHP) – Insurance that does not cover first dollar medical expenses (except for preventive care) – Can be an HMO, PPO or indemnity plan, as long as it meets the requirements Revised August 18, 2004.

HSAs were created in Medicare legislation signed into law by President Bush on December 8, 2003