Consumer Guide to Health Care
Health Spending Accounts
All external hyperlinks are provided for your
information and for the benefit of the general public. The Department of
Health Services does not testify to, sponsor, or endorse the
accuracy of the information provided on externally linked pages.
There are several types of accounts that allow individuals to set aside
money to pay for medical expenses. These accounts all offer tax advantages,
but have different rules regarding eligibility and contributions. They
include health savings accounts (HSAs), which have largely replaced Archer
medical savings accounts (MSAs). HSAs are available to the self-employed and to
employers of all sizes. The purchase of a high-deductible health plan
is required. Flexible spending accounts (FSAs) and health reimbursement
arrangements (HRAs) are not available to the self-employed and do
not require the purchase of a high-deductible health
plan.
Getting started
Your first step is to figure out the type of health spending account
for which you might
qualify. You then need to carefully consider whether or not it will
be beneficial for you to sign up. The following link can help:
Health savings accounts
Health savings accounts became widely available to consumers in 2004. These accounts
have fewer restrictions than the Archer medical savings accounts that were made available
to a limited number of people in 1996.
PDF: The free Acrobat Reader®
software is needed to view and print portable document
format (PDF) files. Learn
more.
Last Revised: July 29, 2008
|
