HSA stands for Health Savings Account, and they came into being in 2003. The purpose of HSAs is helping people save for future medical expenses with tax-free money deposited into a health savings account. In order to get an HSA, you have to have a special HSA health insurance plan that is sometimes referred to as a "qualified high deductible health plan." The point of the HSA is to help you pay for your medical expenses tax-free, and in return, you select a higher deductible, catastrophic health care plan without frills like office visit coverage and prescription drug coverage.

The tax advantages for using HSA health insurance are large. You're allowed to use the HSA part of the insurance plan to pay for medical expenses tax-free. You deposit money into the account pre-tax, and it waits for you to have medical expenses, which you can pay tax-free. The price advantages of an HSA setup are very large, too. Premiums are drastically lower since you take on the expense of everyday medical costs like doctor visits, prescriptions, and urgent care visits. You also take responsibility for a higher deductible before any catastrophic insurance benefits would kick in.

Some plans have coverage advantages, too. This is because, with many high-deductible health care plans, you're 100% covered after you meet your deductible, while most plans provided through employers or purchased by the self-employed cover 90% of those costs if you're lucky.

With an HSA, you have to remember the difference between a stop-loss or maximum out of pocket expense you would pay as compared with the deductible. A plan with a $500 deductible isn't the same as a $500 maximum-out-of-pocket plan. That's because some medical expenses don't count toward your deductible. Your stop-loss is dependent on the catastrophic coverage you have. It could be as high as $5000.
 
The benefits of HSA Health Insurance include lower monthly premiums, tax savings, and control over more of your healthcare dollars.