A Health Savings Account (HSA) is an account that's used exclusively to accumulate funds that you can use to pay non-reimbursed medical expenses (excluding health insurance premiums). HSAs are available to individuals who are covered by a high-deductible medical plan.
You and/or your employer can fund the account with tax-deductible contributions. Plus, your HSA earnings grow tax-free to help you save for qualified medical expenses on a tax-advantaged basis. If used for qualified medical expense, funds withdrawn from the account are non-taxable, and unused funds can continue to grow and earn interest with no penalty.