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What is an HSA?

An HSA is a tax favored account like a personal savings account or a 401(k) for healthcare expenses. This pre-tax benefit account, in conjunction with your State High Deductible Health Plan (HDHP), is used to pay out-of-pocket health, prescription, vision, and dental eligible expenses that are not covered by insurance (e.g., deductibles, copays, and coinsurance). You can invest or earn interest on the money in your HSA so that it grows over time. Unlike FSAs, the entire HSA balance will roll over each year and remains yours even if you change health insurance plans, retire, or leave state employment.