A Health Savings Account is typically paired with which health plan, and what is a key feature?

• A. A high-deductible health plan, funds roll over and are owned by the employee
• B. A traditional PPO, funds do not roll over
• C. A high-deductible plan, funds are owned by the employer
• D. A plan with no deductible; funds are forfeited if not used

Answer: (A)

Health Savings Accounts are paired with high-deductible health plans because these plans encourage you to save for medical costs while keeping premiums lower, and the HSA provides a tax-advantaged way to fund those costs. A defining feature is that the money in the account belongs to you (the employee) and it rolls over year after year, growing and remaining available for future qualified medical expenses, even if you change jobs or plans. This combination—HDHP + employee-owned, rolloverable funds—is what makes the option with a high-deductible plan and funds that roll over and are owned by the employee the best fit. Traditional PPOs aren’t typically HDHPs or HSA-eligible, and a plan with no deductible isn’t compatible with the HSA structure; claiming ownership by the employer or forfeiture of funds if unused would misstate how HSAs work.