A Health Savings Account (HSA) is a tax-free savings account combined with a high deductible health plan.
An HSA allows anyone in Connecticut under the age of 65 who enrolls in a compatible “high deductible” health plan (HDHP) to make tax-free contributions. In addition, HSA’s allow Connecticut enrollees to contribute 100% of the deductible, which eliminates any post-tax expense. HSA’s allow both the employer and the employee in Connecticut to contribute to the same account in the same calendar year. HSA’s are available for Connecticut individuals, self-employed, and businesses.
Health Savings Accounts are 100% tax deductible, they are employee owned, they rollover from year to year and earn interest tax-free. These funds can be used to pay for medical expenses tax-free, as well as to supplement income at retirement. Withdrawals from HSA’s for non-qualified medical expenses will result in penalties and taxes.
Health Savings Accounts will revolutionize the way healthcare is provided in Connecticut and the country. They will restore the doctor-patient relationship, allow patients to become consumers of their own healthcare, be more affordable and receive unprecedented tax benefits. Health Savings Accounts are the future!