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About your HSA The Medicare bill that was signed by President Bush in December 2003 contained a very exciting provision. This law enacted a new program called Health Savings Accounts (HSA). An HSA is a personal savings account for medical expenses that you or your family may have in the future. The best part is, you can make Tax-Free contributions to your HSA, earn interest that is Tax-Free, and withdraw your savings Tax-Free. Here is how they work: First, you must be a participant in the specially designed insurance program offered by NovaSys Health. This plan is called the HSA PPO. Then, you make monthly contributions to your HSA. The contributions are Pre-Tax, which means that the amount is deducted from your paycheck before federal or state taxes are calculated. Finally, as you or your family members incur certain medical expenses, simply withdraw the money from your account. This can be done electronically through the Internet or by submitting a paper form to the HSA Administrator, DataPath Administrative Services.
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