Tax Savings – An HSA provides you triple tax savings: (1) tax deductions when you contribute to your account; (2) tax-free earnings through investment; and,(3) tax-free withdrawals for qualified medical expenses
Portability – Accounts are completely portable, meaning you can keep your HSA even if you: Change jobs,Change your medical coverage,Become unemployed, Move to another state, Change your marital status.
High Deductible Health Plans (HDHPs) You must have coverage under an HSA-qualified “high deductible health plan” (HDHP) to open and contribute to an HSA. Generally, this is health insurance that does not cover first dollar medical expenses.
HSA's are not for everyone and many of my clients are offering both Traditional and HSA's together giving the employee the choice. The cost savings with the HSA accounts by the employer in most cases funds the employee's HSA bank account