What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is an individually owned tax-exempt trust account that you can put money into to pay for current and future medical expenses. There are certain advantages to depositing money into these accounts, including favorable tax treatment. HSAs were signed into law on December 8, 2003. HSAs are part of the Medicare Prescription Drug Improvement and Modernization Act of 2004.