Health savings account (HSA)
Updated September 30, 2026
Definition
A savings account for people with a qualifying high deductible health plan. You put in money before taxes and use it for qualified medical costs. Money you don't spend stays yours.
A health savings account (HSA) lets you set aside money before taxes for medical costs. To open one, you need a high deductible health plan that qualifies. Money you don't spend carries over each year, and the account stays with you if you change jobs.
You can use HSA money for deductibles, copays, coinsurance, and other qualified costs. You generally can't use it for premiums. Care you got before you opened the HSA doesn't count as a qualified cost.
For example, say you opened your HSA in March 2025. You have a $400 bill from care in January 2025 and a $250 bill from care in June 2025. Only the $250 bill can be paid with tax-free HSA money. If you're weighing plans, see how to choose a health insurance plan.
Related terms
Guides that use this term
- GuideHow to choose a health insurance plan and avoid big billsCompare health plans by total yearly cost, not just the premium. Check networks, doctors, drugs and the SBC, with a worked example and 2027 deadlines.
- Start hereCan't afford your medical bills? Every option, in orderCan't afford a medical bill? Here's every option in order, from checking the bill and charity care to payment plans, collections rights and your credit.
Sources
- Health savings account (HSA) (glossary), HealthCare.gov. Accessed September 30, 2026.
- Publication 969, Health Savings Accounts and other tax-favored health plans, Internal Revenue Service. Accessed September 30, 2026.
This is general information, not legal or medical advice. Rules can depend on your plan and your state. Romi Care isn't an insurer, law firm, collection agency, or government program.