The HSA has two components the high deductible insurance plan and the tax qualified savings account.

The insurance plan typically cost 30-50% less than traditional insurance and pays 100% of your claims once you have met the deductible. A lot of times you will also reduce your out of pocket exposure when comparing the plan against traditional insurance plans.

The savings account allows you to contribute money up to an annual maximum limit of $2,850 for an individual and $5,650 for a family. You can take an above the line deduction for the amount of your contribution when you file your taxes. The money in the account grows tax-free and you can take tax-free withdraws for eligible expenses including those from medical, dental, vision, etc.