High Deductible

• Before you can get a health savings account, you have to have a high deductible health insurance plan. A high deductible plan is one with a deductible of at least $1,200 for an individual or $2,400 for a family as of 2011. You do not have to prove to the financial institution that you open the account with that you have this high deductible. You will only have to prove it if you are audited by the Internal Revenue Service.
  
  

Contributions

• The money that you contribute to a health savings account is deducted from your annual income. This allows you to use pre-tax dollars to pay for your medical expenses. Each year, there is a maximum amount of money that you can contribute to your account. For example, as of 2011, an individual can contribute up to $3,050 annually, and a married couple or family can contribute up to $6,150 to the account.
  
  

Expenses

• Once you put the money into a health savings account, you can use it for any qualified medical expense. This is to help you pay for items that you would normally have to out of your own pocket. For example, you can use the money to pay for deductibles and co-pays for medical treatment. You can also use the money to pay for prescription drugs or items that are not covered by your insurance, such as dental or vision care.
  
  

Rollovers

• If you want to fund your health savings account quickly, there are a few ways that you can roll over funds from other accounts. For example, if you have a flexible spending account at work, you can roll over the balance of your account to a health savings account. If you do this, you have to roll over the entire balance of your account. You can also roll over funds from your IRA, but you cannot exceed your annual maximum for the health savings account.