What does Health Savings Account- HSA mean?

The health savings account is an advantageous insurance related instrument but only those participating in a high deductible health plan (HDHP) can be eligible for its benefits. These high deductible plans imply paying not so expensive premiums, but definitely much higher deductibles. Deposits into the health savings account can be made by the policyholder himself or by the employer if it is an option offered by him. As of 2009, the minimum deductible per family is set at $2,300 and the maximum out-of pocket at $11,600. Usually funds of the HSA are being used towards paying for medical care such as dental, ophthalmologic or paying for certain medications.

Health Savings Account –HSA explained

The Health Savings account is one huge tax saver in the sense that the funds one feeds his/her account are actually tax free, and the same applies to the sums which are withdrawn from the fund for certain medical purposes. Being registered with Medicaid does not make one eligible for the Health Savings Account.