CPB Certified Professional Biller Certification Practice Exam

Which account type is referred to as HSA?

1. Health Savings Account

2. Health Security Account

3. Health Support Account

4. Health Spending Account

The correct answer is: Health Savings Account

The term HSA stands for Health Savings Account, which is a tax-advantaged medical savings account designed specifically for individuals who are enrolled in high-deductible health plans (HDHPs). Contributions to an HSA are made on a pre-tax basis, reducing taxable income, and the funds can be used to pay for qualified medical expenses. The benefits of an HSA include tax-free growth on the contributions, the ability to roll over unused funds from year to year, and additional flexibility in managing healthcare costs. This alignment with high-deductible health plans makes HSAs a strategic option for those looking to manage their healthcare expenses effectively. In contrast, the other options presented do not represent a recognized financial account type within the healthcare spending framework. Understanding the specific terminology and function of an HSA is crucial for individuals and professionals involved in medical billing and healthcare finance.