Understanding HSA Versatility

Health Savings Accounts (HSAs) offer significant flexibility for individuals switching health plans. Even if someone begins with a high-deductible health plan and later transitions to a more comprehensive Cadillac plan, the funds already accumulated in the HSA remain accessible for future medical expenses. This means that even after switching plans, individuals can still use their HSA savings for qualified medical costs incurred later, as well as reimburse themselves for previous expenses while under the high-deductible plan. This adaptability makes HSAs a valuable tool for managing healthcare costs over time.