What is an HSA?
Health Savings Accounts (HSAs) are tax-exempt accounts where funds grow to pay for medical expenses. They were created to help give control back to consumers and lower health care costs. HSAs provide a financial incentive for consumers to select a High Deductible Health Plan (HDHP). HDHPs have lower monthly premiums than traditional plans. The HSA/HDHP combination provides consumers with more incentive to shop carefully for health care services.

2 parts to an HSA plan:

High Deductible Health Plan (HDHP) Health Savings Account (HSA) An HSA is your account. If you switch jobs, the HSA goes with you. Your money rolls over every year. There is no "use it or lose it" requirement. In order to open an HSA, you must have a qualified High Deductible Health Plan. The IRS determines the guidelines for qualified HDHPs. The current IRS guidelines are:

IRS Requirements for 2008
    Single Plan Family Plan
Minimum Deductible   $1,100 $2,200
Maximum Out-of-Pocket   $5,600 $11,200
Contribution Limit   $2,900 $5,800
Catch-Up Contribution (55 or older)*   $900 $900
* If a spouse is ?also 55 or older, a second HSA must be established and a second contribution of $900 could be made to that account.
IRS Requirements for 2009
    Single Plan Family Plan
Minimum Deductible   $1,150 $2,300
Maximum Out-of-Pocket   $5,800 $11,600
Contribution Limit   $3,000 $5,950
Catch-Up Contribution (55 or older)*   $1000 $1000
* If a spouse is also 55 or older, a second HSA must be established and a second contribution of $900 could be made to that account.