The high cost of medical care and its inaccessibility to many people have created an environment where, for some, health care is unreachable. Given the rising costs of medical care and the fraying of employer-provided health insurance, many people have come to assume more personal responsibility for their health insurance. One popular option is the health savings account (HSA), which is a self-directed, self-funded plan designed to help individuals meet current and future qualified medical health expenses on a tax-free basis.

This course explores health savings accounts: an increasingly popular vehicle that helps consumers meet their health care needs. Used in conjunction with high-deductible health plans (HDHPs), health saving accounts allow individuals to save for current and future medical expenses on a tax-advantaged basis. The course explains HSAs in detail, including how they are established, how they are maintained, who is eligible, how accounts are funded, and how the funds may be used.

Upon completion of this course, students will be able to:

• demonstrate understanding of health savings accounts, their uses, and their tax-advantaged nature
  
• identify the requirements for HSA eligibility
  
• recognize the characteristics of the two parts of HSAs-the high-deductible health plan and the savings account itself
  
• demonstrate an understanding of the contribution rules that pertain to HSAs, including limits, catch-up provisions, and the special rules for married people
  
• articulate the tax issues surrounding HSAs
  
• differentiate between permitted and nonpermitted HSA investments
  
• recognize the difference between qualified and nonqualified medical expenses