Health Savings Accounts
A Health Savings Account (HSA) is a special type of savings account that lets you put money away tax-free and take it out tax-free, as long as you use it for qualified medical expenses, like deductibles, copayments, coinsurance, and more. For an HSA-qualified plan, look for the orange HSA icon 
when you shop on our Plan Match tool.
Can I open a Health Savings Account?
You can put money in an HSA tax-free if you:
- Are enrolled in an HSA-qualified health plan, including:
- A DC Health Link high-deductible health plan (HDHP) at any metal level that meets the yearly IRS requirements on deductibles and out-of-pocket costs; OR
- NEW in 2026: Any DC Health Link Individual & Family Bronze or Catastrophic health plan
- Aren’t enrolled in a general-purpose Flexible Spending Account (FSA)
- Aren’t enrolled in other healthcare coverage, for example Medicaid, Medicare, Tricare, or non-HSA coverage through a spouse
- Can’t be claimed as a dependent on someone else’s tax return
- Haven’t received Veterans Affairs (VA) or Indian Health Services (IHS) medical benefits in the last 3 months
Will a Health Savings Account fit my needs and budget?
An HSA will help you save money on your taxes. You can save money in 3 ways:
Contributions to your HSA are tax-free.
The money you put in your account reduces your taxable income.
The money in your HSA grows tax-free.
You don’t pay taxes on any interest or other returns on your HSA so your savings grow faster.
You don’t pay taxes on money you take out of your HSA for qualified medical expenses.
You can use your HSA without worrying about paying taxes.
Other key benefits of an HSA include:
No expiration
Your HSA and the funds you put into it are 100% yours. The account isn’t tied to your job or anything else. You won’t lose money you don’t use, even if you no longer have the same insurance coverage.
Flexibility
The money you put in your HSA rolls over automatically every year. There’s no deadline to use the money so you can save up for emergencies or costly health care services like surgery or braces.
Reducing your taxable income
HSA contributions reduce your taxable income. For example, if your income is $42,000 and you put $2,000 into your HSA in 2026, your taxable income will be reduced to $40,000 before taking any other deductions.
Shareable funds
You can use your HSA funds to pay for qualified medical expenses for your spouse and any tax dependents.
How can I use a Health Savings Account?
| You CAN use your tax-free HSA on qualified medical expenses, like… | Including… |
|---|---|
| Doctor visits | Copays and coinsurance, consultations, urgent care, specialist care, physical therapy, mental health services, and telehealth |
| Medication | Prescription drugs (including insulin) and most/many over-the-counter medications like allergy relief, cold medicine, and pain relievers |
| Dental care | Routine cleaning, X-rays, fillings, root canals, crowns, dentures, and orthodontics (braces) but no cosmetic procedures |
| Vision care | Eye exams, prescription glasses and sunglasses, contact lenses and solution, and LASIK or other corrective surgeries |
| Self-care products | Menstrual care products, first-aid kits, bandages, thermometers, blood pressure monitors, sunscreen (SPF 15 or higher) and much more |
| Medical equipment and supplies | Hearing aids, crutches, CPAP machines, diabetes supplies like test strips and monitors, and mobility aids |
How do I open a Health Savings Account?
To open an HSA account, start by checking with your bank or preferred financial institution or go to www.HSAsearch.com.