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Health Savings Account: Here’s What You Need to Know

Updated: May 6, 2019


A health savings account is a self-contributory account that clubs high-deductible health insurance with a savings account. Once the insured pays the deductible, the rest of the cost is covered by the insurance company. If you have an HSA, your share of the amount can be set aside beforehand, and any money left in the account is yours to keep, along with the interest. The account is administered by a centralised government nominated body.


Employers may also contribute to your HSA and claim tax benefits while you remain the actual account owner, which makes it different from other health reimbursement plans run by employers. While retaining the features of health insurance, it also has the following benefits:


• Savings accrued in advance can help pay the deductible

• Health insurance itself can cost less.

• You need not pay tax on the withdrawals you make to pay medical expenses.

• The unused money in the health savings account earns interest that is tax-deferred.

• It does away with expenses that are otherwise to be paid at various levels of administration, as it allows pre-payment and cashless options.


Health savings account not only urges citizens to develop the habit of saving for health but also plays a role in the development of the healthcare system in the country. Here are a few more details about a health savings account:


• Whether you are an employee or self-employed, a high-deductible health insurance policy is necessary in order to have an HSA.

• If you can do with the tax benefits, have moderate medical expenses, and can afford a high-deductible plan, then HSA would be appropriate for you.

• Tax-free withdrawals, tax-deductible contributions, and non-taxable earnings are some attractive features of the HSA.

• Several procedures and expenses are covered by HSA, such as acupuncture, chiropractic care, physical therapy, laser eye surgery, hearing aids, crutches, etc.


Choose which plan you want to go ahead with after great deliberation instead of deciding as soon as you read about the benefits of HSA. It is generally considered risk-free, but it is always better to weigh the pros and cons first. Head over to ManipalCigna Health Insurance company’s website to browse through their health insurance policies.

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ManipalCigna Health Insurance Company Ltd (Formerly known as CignaTTK Health Insurance Company Limited) | CIN U66000MH2012PLC227948 | IRDAI Reg. No. 151 
Reg. Office: 401/402, 4th Floor, Raheja Titanium, off. Western Express Highway, Goregaon (East), Mumbai- 400 063 | Toll free number – 1800-102-4462 | Website address – www.manipalcigna.com
Trade Name / Trade Logo belongs to MEMG International India Private Limited and Cigna Intellectual Property Inc. and is being used by ManipalCigna Health Insurance Company Limited under license. For more details on risk factors, terms and conditions, please read the sales brochure/ sales document available on our website (Download section) before concluding a sale.

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