Understanding HSA vs. Blue Cross: Choosing the Right Health Coverage

HSA is a private savings account for medical expenses whereas Blue Cross is health insurance. When choosing the appropriate insurance provider, you may incur high deductibles and co-insurance amounts. Be sure to consider that when choosing how to cover your health needs.

HSA

• Health savings account (HSAs) are generally used in conjunction with another health insurance plan (HMO, PPO, or idemnity plan). An HSA is a tax-deferred savings account for medical expenses, deductibles, co-insurance amounts.

Blue Cross

• Blue Cross is a health insurance paid for through premiums. Blue Cross is offered through employers and you can also purchase individual plans. This is a full insurance which may have deductibles, co-insurance costs and co-payments for services and office visits.

Comparison

• The major difference between HSA and Blue Cross is the fact that HSA is purely a savings account for your medical expenses, not insurance. Blue Cross covers medical needs such as surgery and testing that may occur but, you will have out of pocket expenses. Insurance combined with a medical savings plan reduces the unexpected bills that may occur from deductibles and co-insurance.