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Insurance Glossary

Find the answers to your insurance questions by clicking on the topic below.

What is....

...an HMO?
...a PPO?
...an HSA?
...Point of Service Insurance?
...a Self-funded plan?
...a Voluntary Benefit plan?

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Glossary: HSA

An HSA is a Health Savings Account which may be attached to an HDHP (High Deductible Health Plan) qualified plan. Not all high deductilbe plans qualify for an HSA account but must meet federal and state critireria. These plans often lack office visit copays and drug cards. Most carriers will help you set up an account or you may do so at your local bank. A Visa or Mastercard is often provided and fund this account and use the credit card to pay for all qualified medical expenses. At the end of the year most people submit these expenses to their accountant or take as a deduction from thier taxes. Some employers permit pretax contributions to an 'Employer Sponsored' HSA plan. In this type of plan you may not make an 'above the line' deduction on your tax return as contributions to the plan are pretax. Any contribtions to the plan belong to the employee, so employer contributions if any, belong to the employee. Penalties may apply for transfer of funds out of an HSA account to a savings or checking account, especially if contributions were on a pretax basis.

Qualfied expenses include all medical claims, Rx and even over the counter medications like Tylenol. For more information please visit website below.

http://www.ustreas.gov/offices/public-affairs/hsa/faq.shtml

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