A Health Spending Account, also known as an HSA, is a benefit program that is set by a company that provides more flexibility to their employees.
Think of it as a pool of money available to spend on ANY government approved medical expense. It provides each employee with the flexibility to choose how they want to spend their available funds on medical expenses.
For employers, an HSA is an effective way to provide a benefit to your employees but with cost certainty – you know exactly what it will cost with no worry about price increases due to your plan members submitting too many claims!
Unlike a traditional plan, a basic HSA is not insurance – but that can be added for a fee.
