The major types of consumerdirected coverage are:
• Health savings accounts, usually coupled with highdeductible health plans.
• Health reimbursement arrangements.
• Flexible spending arrangements.
• Archer Medical Savings Accounts.
Health Savings Accounts
A health savings account is a type of medical savings account that allows you to save money to pay for current and future medical expenses on a tax-free basis. In order to be eligible for a health savings account, you must be covered by a high-deductible plan, not have any other health insurance (including Medicare), and not be claimed as a dependent on someone else’s tax return.
You can use this account to pay for your qualified health expenses, including expenses that the plan ordinarily doesn’t cover, such as eyeglasses and hearing aids. Expenses paid out of the HSA that are eligible expenses under your high-deductible health plan will count toward the plan’s deductible.
