HSA's were developed by the government to help provide low cost health insurance for self-employed persons. HSA's are a favorite California health insurance plan for self-employed people.

According to the IRA ... an HSA is a tax-exempt trust or some refer to it as a custodial account. HSA's were created specifically for paying medical expenses for the beneficiary who is, at the same time, covered under a high deductible health plan (HDHP).

In simpler language, a health savings account (HSA) is like a bank account that works with your individual health plan. As money is added to your health savings account, you can use it to pay for most health care expenses.

Examples of what you might use your savings for include  paying for medical costs that your plan does not "yet" cover  ..  payments that would be credited towards meeting your deductible amount - or for medical expenses not covered by your health plan such as dental, counseling, etc.

If you don't need all of the money that is in your health savings account, it will still be available to you the following year. All rolls over. No money is lost and all earns tax-free interest.