The theory behind the HSA is to encourage better consumer decisions regarding health care expenses. The incentive is threefold, reduce your taxable income now when you are in a higher tax bracket than you may be at retirement, no tax consequence when used for qualified medical expenses, and if you hold and save, the list of qualified expenses gets bigger and includes medicare premiums for instance. Employers generally contribute as well each year I treat it as additional deferred comp, or its not a lot each year but I adds up over time and will be much more needed in those golden years than I need the money now. This is my third year already in the plan and there are stock and mutual fund options to grow t he money as well It's a risk reward equation vs traditional health insurance premiums that cover a lot of services I don't need and don't want to pay for