2. Where does the money deposited in the account come from?
 

The money comes from refinancing your current health insurance.
The average cost of health insurance was $9,068.00 for a family in 2003 in the U.S., according to the Kaiser Foundation. That is how much money on average, per family, was spent last year on family health care insurance coverage (HMOs, PPOs, fee for service plans) in the United States. Remember HSAs are two parts: an insurance policy and a tax-free account. So, if you take $3,000.00 of that $9,068.00 (leaving $6,068.00 unspent) and you or your employer purchase a health insurance policy that covers your medical expenses above $5,1,50.00, the high deductible health insurance plan is in place. Now, according to the law, you are allowed to deposit tax-free up to $5,150.00 to pay for the routine medical care. Withdrawals for medical care are tax-free. Your insurance company may administer the account or you can open the account with an HSA administrator. To review, out of the $9,068.00, you spent $3,000.00 on a health insurance policy with a $5,150.00 deductible. The insurance covers your family’s health care costs that exceed the $5,150.00 deductible. Out of the $6,068.00 remaining, you and your employer deposit $5,150.00 into your health savings account. It is now your money. If you leave your employer, it is still your money. It follows you. What you do not spend out of the account rolls over, so if you and your family only have health costs of $2,000.00 this year, you and your family would have $3,150.00 remaining in your Health Savings Account. So, next year, you will start your Health Savings Account with $3,150.00, plus the interest you earned, and you and your employer will add another $5,150.00 to your account, giving you ($5,150.00 + $3,150.00 = $8,300.00) to spend next year. You and your employer just saved $918 in health care costs in this example.