As the number of enrollees in high-deductible health care plans climbs, and with them, the amount of cash stashed into health savings accounts, more financial institutions are offering the accounts and are innovating to snag more of the market.
The flow of money into health savings accounts, or HSAs, shows no sign of slowing as a rising number of employers – faced with climbing insurance premiums – open the accounts as companions to high-deductible plans for their employees.
HSAs serve as a tax-exempt nest egg for employees. They allow an employee and his or her employer to put away a limited amount of money each year, tax-free, for the employee to use for qualified medical expenses in the future. The balances in the accounts carry over year to year, and the accounts belong to the employees regardless of employment.
Read More: HSA’s Rising at Healthy Rate