What "health savings account" means in finance

A Health Savings Account (HSA) is a tax-advantaged savings account that is designed to help individuals pay for healthcare expenses. It is available to individuals who have a high-deductible health plan (HDHP). The money deposited into an HSA is tax-deductible, and it can be used to pay for qualified medical expenses, including deductibles, copays, prescriptions, and other healthcare-related costs. HSAs allow individuals to save money on healthcare expenses, while also providing tax benefits. Additionally, any unused funds in an HSA can be carried over to the next year, making it a flexible and cost-effective option for managing healthcare costs.