Prerequisites

• Health savings accounts require you to be covered with a high deductible health insurance plan; according to the U.S. Treasury, deductibles must be $1,100 or higher for a single person and $2,200 for a family.
  
  

Flexibility

• HSAs give the saver more control over their health care decisions and the saver may decide where to save or invest the money in the account.
  
  

Planning

• It is difficult to foresee serious health problems, so it is not always possible to rely on an HSA to cover every health expense; for healthy people, HSAs may go unused and grow over time.
  
  

Other Expenses

• When funds are withdrawn from an HSA for unqualified expenses (non-medial expenses) taxes are charged along with a 10% penalty; the 10% penalty no longer applies at age 65.
  
  

Limitations

• According to the Mayo Clinic, individuals may contribute about $3,000 to an HSA every year and families can contribute $6,000; limits change each year based on inflation.