What are HSAs? For the full answer and lots more go to www.hsafinder.com and/or buy The Small Business Guide to HSA's (Author: JoAnn Mills Laing, Brick Tower Press, September 2004). The short answer, for now, is that HSAs can only be set up when an employee has a qualifying high-deductible, low-monthly premium health insurance policy.
HSAs are then similar to IRAs in that both employees and companies can put pre-tax contributions into them on a regular basis to be invested tax free, and the employee owns the account and takes it wherever they might work. A big difference is that individuals can withdraw money from HSAs with both debit cards and checks to pay for a wider range of medical expenses than most insurance policies cover.