HSA Tax Abbreviation

Health Saving Account

An account that allows individuals to pay for current health expenses and save for future qualified medical and retiree health expenses on a tax free basis. Health Savings Accounts (HSAs) were created by H. R. 1, the "Medicare Prescription Drug, Improvement and Modernization Act of 2003," which was signed into law by US President George W. Bush on December 8, 2003. HSAs allow employers and/or employees to contribute to a tax-deferred personal savings account which is used to pay smaller and routine medical expenses.