PSI Ohio Insurance Practice Exam

Which account is most commonly associated with a high deductible health plan?

1. Flexible Spending Account (FSA)

2. Health Savings Account (HSA)

3. Health Reimbursement Arrangement (HRA)

4. Retirement Health Account (RHA)

The correct answer is: Health Savings Account (HSA)

The answer is Health Savings Account (HSA) because HSAs are specifically designed to work in conjunction with high deductible health plans (HDHPs). An HSA allows individuals to save money tax-free for medical expenses, promoting the use of HDHPs, which typically have lower premiums but higher deductibles. The fundamental purpose of an HSA is to provide a financial tool that enables individuals to set aside funds for qualified medical costs incurred before they reach their deductible, thereby making high deductible plans more accessible and manageable. This coupling encourages consumers to be more cost-conscious about their healthcare choices and can ultimately lower overall healthcare costs. In contrast, a Flexible Spending Account (FSA) is not specifically tied to high deductible plans and has different rules regarding fund availability and usage. A Health Reimbursement Arrangement (HRA) is employer-funded and not typically linked to high deductible plans in the same way as HSAs. Lastly, a Retirement Health Account (RHA) is focused on retirement and is not commonly associated with the current medical expense usage that HSAs support.