A health savings account (HSA) is a plan that can be established by an individual to pay for the qualified medical expenses incurred throughout the year that is not paid by the insurance company. You and/or your employer can contribute up to an annual maximum amount. If your employer contributes to your HSA on your behalf (this would come from your paycheck), then this may lower your gross taxable income. This type of account allows you to retain and accumulate the health savings account assets even if you don't utilize them within the year. You are also allowed to keep this type of account if you change jobs or leave the workforce.