Health care savings account balances held by members of HealthEquity Inc. now top $1 billion, the company disclosed today.
A Salt Lake City-based HSA non-bank custodian, HealthEquity works with more than 60 health plan partners and services more than 760,000 health care accounts for employees at more than 23,000 companies across the U.S.
An HSA is an individually owned savings and investment account coupled with an HSA-enabled health plan. Unlike flexible spending accounts (FSAs), there is no ‘use-it or lose-it’ rule and qualified medical expenses can be withdrawn tax-free year after year.
In addition to their own tax-free contributions, many HealthEquity members also receive tax-free contributions from their employers. Additionally, HSA deposits earn tax-free interest and can be withdrawn without penalty to pay for medical expenses.