Skip to Main Content
What do you need to know during the COVID-19 outbreak? View Resource Center >


Health Savings Accounts (HSAs) are tax-favored accounts that can be established by individuals who are covered by high-deductible health plans (HDHPs), and the funds that are contributed to HSAs can be used to pay for certain medical expenses. Employees and employers alike utilize HSAs as a means of funding health care costs and advancing the role of the consumer.



Only an eligible individual can establish an HSA and make contributions – or have contributions made on their behalf. In general, any individual who has HDHP coverage is considered eligible so long as he/she has no other disqualifying coverage.



Contribution to an HSA can be made by the account holder or by any other person on their behalf, including an employer. The contributions for a year cannot exceed the total of the applicable monthly limitations in effect for each month in which the account holder was an eligible individual.


Employer Contributions

An employer can make contributions to an employee’s HSA, but the amount of the employer’s contributions counts towards the individual’s annual contribution limit. Employer contributions are treated as employer-provided coverage and are excludable from the employee’s gross income.


Qualified Medical Expenses

Distributions from an HSA are tax-free if used to pay for qualified medical expenses. Generally, a qualified medical expense is an expenditure for medical care that is not reimbursed by insurance.


Resources and Helpful Links:



This Benefits Brief is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.

Posted by in Uncategorized

Archives by Month:

Search Blog: