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Health Savings Account (HSA) Explained!An HSA is an account established by an individual to pay for health care. To set up an HSA, the individual must be covered by a federally qualified HDHP. A Health Savings Account (HSA) is an individually owned, tax-advantaged bank account that allows you to accumulate funds to pay for qualified health care. An HSA is tax-advantaged, special-purpose savings account that should be used to pay for authorized medical expenses.