These programs are designed to assist the employer in saving money on health care premiums.  These arrangements are often referred to as Consumer Driven Healthcare and afford the employee to participate in healthcare decisions and safe money on a tax-deferred basis. This savings can be used to cover unforeseen medical expenses; or, used to cover the costs of procedures excluded in most traditional health plans. 

An HSA is a form of health insurance coverage that includes several parts in 2008:

-A tax-exempt personal savings account to be used for qualified medical expenses

-A health plan with a high deductible health plan (HDHP) with a high deductible (e.g. $1, 000 for self-only coverage and $2,200 for family coverage)

-A health plan with out-of-pocket limitations (e.g. $5,600 for self-only coverage and   $11, 200 for family coverage)

-Contribution limits are indexed year; catch-up contributions are allowed for individuals age 55-65 of $900.