Is a Health Savings Account Card a Type of Credit Card?
Understand the true nature of a Health Savings Account card and its key differences from how credit cards operate.
A Health Savings Account (HSA) card is not a credit card. An HSA is a specialized savings account designed to help individuals save and pay for qualified medical expenses. The card draws directly from funds you have contributed.
Understanding a Health Savings Account
A Health Savings Account is a tax-advantaged savings and investment account for individuals enrolled in a High-Deductible Health Plan (HDHP). It provides a dedicated fund for healthcare costs with tax benefits. The Internal Revenue Service (IRS) sets criteria for HDHPs, including minimum deductible amounts and maximum out-of-pocket limits.
To be eligible for an HSA, an individual must be covered under an HDHP and not be enrolled in Medicare or claimed as a dependent. For 2025, an HDHP must have a minimum deductible of $1,650 for self-only coverage or $3,300 for family coverage. Maximum out-of-pocket expenses for an HDHP in 2025 are capped at $8,300 for self-only coverage and $16,600 for family coverage.
Contributions to an HSA can be made by the account holder, an employer, or both. These contributions are pre-tax or tax-deductible, reducing taxable income. Funds grow tax-free, and any unused balance rolls over from year to year, remaining available for future medical expenses.
How an HSA Card Functions
The HSA card functions like a debit card. When you use it, the card accesses funds already deposited into your account. This means you are spending your own money saved specifically for healthcare costs.
The HSA card can be used at healthcare providers and pharmacies to pay for eligible medical expenses. These expenses include doctor visits, prescription medications, dental care, vision care, and other qualified healthcare services and products as defined by IRS guidelines.
Key Differences from Credit Cards
A distinction between an HSA and a credit card lies in the source of funds. An HSA utilizes your own money that you have contributed, whereas a credit card allows you to borrow money from a financial institution. Consequently, HSA transactions do not accrue interest charges, which is a common feature of credit card balances that are not paid in full.
An HSA does not influence your credit score because it is not a debt instrument. Conversely, credit cards directly contribute to building a credit history, with payment behaviors and credit utilization impacting your credit score. This makes credit cards a tool for establishing financial credibility, a role an HSA does not play.
Health Savings Accounts offer tax advantages that are not associated with typical credit card use. Contributions to an HSA are tax-deductible, the money grows tax-free within the account, and withdrawals for qualified medical expenses are also tax-free. This triple tax benefit, detailed in IRS Publication 969, positions HSAs as a distinct financial tool for managing healthcare costs and saving for the future.