What is the primary function of a "health savings account" (HSA)?

The primary function of a health savings account (HSA) is to provide a tax-advantaged savings vehicle that enables individuals to set aside money specifically for medical expenses. HSAs are designed to complement high-deductible health plans, allowing account holders to save pre-tax contributions, which can then be used for qualified medical costs, such as doctor visits, prescriptions, and other health-related expenses.

The tax advantages of HSAs include contributions that are tax-deductible, tax-free withdrawals for qualifying medical expenses, and tax-deferred growth on any interest or investment earnings within the account. This makes HSAs not only a practical option for managing healthcare costs but also an efficient way to save on taxes.

Other potential options, such as financial tools for retirement savings or investment accounts for stocks and bonds, do not accurately capture the specific purpose of an HSA, which is focused on medical expenditures, not general savings or investment activity. Additionally, while fitness-related expenses can contribute to overall health, HSAs do not typically cover gym memberships unless they are part of a prescribed medical treatment. Thus, the focus of HSAs remains solely on facilitating payment for healthcare needs through tax-advantaged savings.