What do Health Savings Accounts (HSAs) primarily help individuals do?

Health Savings Accounts (HSAs) are designed specifically to allow individuals to save money for qualified health expenses. Contributions made to an HSA are tax-deductible, and the funds within the account can be used tax-free for medical expenses, such as deductibles, copayments, and other out-of-pocket healthcare costs. The primary purpose of HSAs is to provide a financial vehicle for covering medical expenses, ensuring that individuals can access necessary healthcare without the burden of immediate costs.

This focus on healthcare-related savings distinguishes HSAs from other financial tools. While retirement savings accounts focus on long-term financial security in one's later years, HSAs are directly tied to managing current and immediate medical expenses. Other options, like investing in stock options or purchasing health insurance, do not align with the primary function and benefits of HSAs, which centers on health expense management.