Originally conceived in December of 2003 and finally implemented in January of 2004, the HSA plan was created to work in conjunction with a traditional high deductible health insurance policy.

With medical costs rising out of control and health insurance premiums following suit, congress needed to do something to enable the average individual and family to continue to afford heath coverage. The HSA, or Health Savings Account was the answer.

A Health Savings Account or HSA is just like having a ordinary bank account, but works with a standard, high-deductible, individual, or family health-care insurance plan. The money put into your HSA can be used to pay for many of your health care expenses, including; money you might need before your actual health insurance coverage begins to make payments (deductible). You can also use it towards paying health care expenses not covered by your existing health care plan.

You will never lose any money left overin your HSA., Whatever balance remains annually is simply rolled over onto the next year. With an HSA, you’ll have control over how to spend your money and how best to put it to work. You can use it for health care expenses including prescription glasses, any extra trips to the pharmacy, or unexpected medication your health insurance plan may not fully cover and many over-the-counter items you not normally considered as legitimate medical expenses.

Since the money in your HSA earns interest the same as a regular bank account, it allows you to plan for your future health care needs through interest earnings.

If you happen to change your job or even health coverage, the money in your HSA account remains and continues to earn interest.. As long as you use the money from your HSA account for eligible expenses as defined by the IRS, this money in your HSA account is tax- free! Your HSA dollars will also earn tax-free interest and there’s no minimum balance amount required.

While the Health Savings Account concept did not solve all of the problems inherent in out health care crisis, the HSA does provide relief and a manageable alternative for millions of Virginia and South Carolina residents.

If you don’t want the burden and stress of paying a lot for health insurance coverage, and want greater financial control than an HSA is definitely something you should consider.