A HSA plan consists of two parts: a high-deductible health insurance policy; and a bank account intended to help individuals save money for future medical expenses or retirement. The money in the account can be withdrawn immediately for qualified medical expenses, and any remaining savings can rollover to the next year.

Who qualifies for HSA plans? In order for an individual to qualify for a HSA account they must be under 65 years of age. Furthermore, the applicant must also currently have a high deductible insurance policy in force. For 2009, the minimum deductible for an individual is $1,150 and $2,300 for a family.

What coverage is afforded under a HSA plan? Because a HSA is associated with a high deductible health insurance policy, individuals will essentially pay for medical care expenses as they arise (with money from their HSA, if they so choose) until their deductible has been met. After the deductible has been satisfied insurance companies will typically cover all additional medical expense for the remainder of the calendar year.

What is the maximum contribution to a HSA for a given year? For 2009, individuals may contribute $3,000 a year, and families are able to contribute $5,950 a year into their account. In addition, individuals older than 55 years of age are allowed a onetime catch-up contribution to their HSA of $1,000.