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A Health Savings Account or HSA, is a consumer driven health plan option. It is an individually owned, tax-free savings account that must be combined with a qualified High Deductible Health Plan (HDHP). Basically, an HSA allows you to save money on a tax-free basis to pay for qualified medical expenses.

HSAs have many advantages over other pre-tax benefits. The accounts are individually owned so your contributions roll over from year to year, and earn interest tax-free! Plus you make all the decisions about the account, like:

• Which company (bank) will hold the account
• You determine your tax-free contribution amounts
• Whether to spend or save the account money
• Which medical expenses to pay from the account

You must be enrolled in a HDHP to participate in an HSA. An HDHP provides comprehensive coverage for serious illnesses and injuries at a more affordable premium rate than most health insurance plans. The deductible requirements are regulated by the Internal Revenue Service (IRS) and must meet certain criteria described below.

Deductible Requirements

Minimum Deductible for Tax Year 2008

• $1,100 for Single Coverage
• $2,200 for Family Coverage

Maximum Out-of-Pocket

Maximums for Tax Year 2008

• $5,600 for Single Coverage
• $11,200 for Family Coverage

HSA Information

• HSA Advantages
• HSA Contributions
• HSA Qualified Expenses
• HSA Distributions
• HSA state tax information
• HSA Road Rules for Employers
• HSA Road Rules for Consumers