A health plan with a medical spending account helps you manage your health costs and provides tax savings.
A medical spending account (MSA) can be paired with certain consumer-driven health plans (CDHP). These health plans typically have a high deductible. They help you set aside pre-tax dollars into an account. You can then manage your healthcare costs by using the funds to pay for eligible out-of-pocket expenses.
To see if a medical savings account is right for you, visit Further (formerly SelectAccount®).
Learn more about spending accounts
What is an HSA and how does it work?
An HSA is a health savings account that works with a high deductible health plan. You can use the funds to help pay for out-of-pocket healthcare expenses. your health insurance doesn’t cover.
Use the money in an HSA to pay for out-of-pocket expenses like, deductibles, copays and coinsurance. You can also use HSA funds to pay for dental and vision care.
Advantages of an HSA
A big benefit of an HSA is that it’s tax-deductible. You can put pre-tax dollars in the HSA account, and earn tax-free interest. You pay no taxes when you take money out of the HSA to pay for eligible healthcare expenses.
Here are some advantages of an HSA:
- Tax deductible: You pay no taxes on the money you put into the account
- Tax free: You pay no taxes on money you take out to pay for eligible healthcare expenses
- Tax-free interest: You earn interest on the money in your HSA
- Rollover: Your HSA balance rolls over at the end of the year, so you never lose funds you don’t use
- Portable: You can keep your HSA, if you switch to a different high-deductible insurance plan or change employers
- Retirement: At age 65, you can use HSA funds for any reason, not just healthcare — without paying a penalty.
- Investment: When your balance exceeds $1,000, you can invest dollars over that amount in mutual funds, stocks or bonds
How does an HSA differ from an HRA or an FSA?
An HRA is a health reimbursement arrangement available only through the workplace. Employers fund HRAs. If you have a higher-deductible plan through your work, you can use dollars in the HRA to cover your eligible healthcare costs. But you must use the money in your HRA by the end of every year. The balance doesn’t carry over to the next year.
An FSA is a flexible spending account that lets you set aside money tax-free to pay for eligible expenses, like day care and healthcare products and services your health plan doesn’t cover (such as vision and dental care). An FSA is only available with healthcare plans you get through your employer.
You can pair an FSA with an HSA. However, you must use your HSA to pay for eligible healthcare expenses. You can use your FSA dollars for other eligible expenses, like vision and dental care.
Compare HSAs, HRAs and FSAs
| Account type | Use for eligible healthcare expenses |
Make contributions (tax free) |
Earn interest | Portable | Use at age 65 for any expense |
|---|---|---|---|---|---|
| HSA | Yes | Yes | Yes | Yes | Yes |
| HRA | Yes | Employer contributes |
No | No | No |
| FSA | Yes | Yes | No | No | No |
How do I get an HSA or other medical savings account?
If you're looking for a health plan for you and your family, see our individual and family plans. If you choose an HSA plan, Blue Cross will provide you with the information you need to open your HSA account.
See individual and family plans
If you have a health plan through your employer, check with human resources to find out about HSA, HRA or FSA options and how to open an account.
How do I find my HSA, HRA or FSA balance?
If you are a Blue Cross member and have an HSA, HRA or FSA, register or log in to the member site to check your balance.
More about HSAs
6 benefits of choosing an HSA
7 ways to save on healthcare
How a health savings account works
Saving for retirement with an HSA
This is general information about how plan benefits work. Review the Summary of Benefits and Coverage and your specific health plan benefits book for information about how your plan works.