What is a Health Savings Account (HSA) primarily used for?

A Health Savings Account (HSA) is designed primarily to help individuals save money specifically for medical expenses. The funds contributed to an HSA can be used tax-free for qualifying out-of-pocket healthcare costs, such as deductibles, copayments, and other eligible medical expenses. HSAs provide a tax advantage, allowing individuals to deposit pre-tax dollars, thereby reducing their overall taxable income.

Moreover, HSAs are beneficial because they are portable, meaning the account stays with the individual even if they change jobs or health plans. Importantly, HSAs can also grow tax-free, allowing individuals to build savings that can be utilized for future healthcare needs, making them a valuable tool for managing healthcare costs. Thus, the primary purpose of an HSA is indeed to pay for various health expenses.