A health savings account (HSA) is a medical savings account available to taxpayers in the United States who are enrolled in a high deductible health plan. The individual, who deposits money, often matched by their employer, into their account, owns an HSA. This total is rolled over from year to year, allowing individuals to build the value over an extended period of time.
HSAs possess tax benefits in that they are not subject to federal income tax at the time of deposit, and if withdrawals are made for approved healthcare services, the withdrawal is tax-free as well.
The benefit for people with HSAs that are interested in medical tourism is that almost all aspects of a medical tourism trip are included as approved healthcare services for procedures deemed medically necessary. This means that your medical procedure, airfare, local travel, and accommodations while traveling are all payable, tax free, out of your HSA.
So in addition to the tremendous savings that can be found through medical tourism, the power of bundling the savings with the tax-free advantages available through an HSA make it truly a remarkable opportunity.