What is a health savings account?

Who is this for?

Michigan Health Insurance – Customer Service – Health Spending Accounts

If you’re interested in health savings accounts, this information can help you understand more about them and how to use them.

A health savings account, or HSA, is a kind of health spending account. You can only pair it with a qualifying health plan. Most people put money into their HSA by having it deposited from their paycheck before taxes.

You can also deposit post-tax money in your HSA and deduct your contributions from your income tax. Then, when you have a medical expense, you can use the money in your account. Read How do HSAs work? to learn all the various ways an HSA can get funded.

HSAs work with your insurance to help you cover your part of medical expenses. You can also use it to cover some spouse and dependent expenses, even if they aren’t on your plan. Read How can I use my HSA? to find out more about what they cover.

What are the advantages of an HSA?

Besides the tax benefits and helping you save for the future, an HSA also has these advantages:

Who can have an HSA?

You're eligible if you:

  • Have an HSA-compatible, high-deductible health plan
  • Can't be claimed as a dependent on someone else's tax return
  • Aren't covered by or already enrolled in another health care plan that isn't HSA-compatible
  • Aren't enrolled in Medicare

Which Blue Cross Blue Shield plans pair with an HSA?

Our HSA with HealthEquity® works with several of our bronze and silver individual and family plans. You can also pair it with eligible employer-sponsored plans. They integrate with your plan, so you can stay on top of your health care spending.

You can pair the following plans with an HSA:

*Note: Silver plans that pair with an HSA must have an actuarial value of 70. Those who qualify for Native American or other cost-sharing benefits aren't eligible for a HSA.