Health Savings Account (HSA) Law and Legal Definition
A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are covered by high deductible health plan (HDHP). It helps an individual to pay off his/her present health expenses and also to save money for the future health expenses without paying tax. Funds deposited in the HSA are not subject to federal income tax. Funds deposited in HSA rolls over and accumulate year to year if not spent during a participant's lifetime. HSA are owned by the individual, when compared to company-owned health reimbursement arrangement (HRA) which is an alternate tax-deductible source of funds under HDHP. HSA funds can be used to pay qualified medical expenses at any time without federal tax liability or penalty. Employees or employer will contribute to HSA and the maximum amount of contribution is limited every year.
The HSA was created by the Medicare Prescription Drug, Improvement and Modernization Act of 2003, to replace the medical savings account (MSA) system.
Legal Definition list
- Health Savings Account (HSA)
- Health Resources and Services Administration [HRSA]
- Health Reimbursement Arrangement (Health Care)
- Health Reimbursement Accounts (HRA)
- Health Registry
- Health Security
- Health Service Program
- Health Service Research
- Health Services Research
- Health Services [Education]
- Health Studio Services