What is the difference between HSA and PPO?

An HSA is a medical savings account that is used primarily for people enrolled in high-deductible health plans. A PPO is an organization of doctors, hospitals and health providers that are part of an insurance company network.

Funds in an HSA are used to cover medical expenses incurred while the enrollee is on the plan. Money deposited into this kind of account is not subject to federal income taxes, and any unused amounts in the account can be rolled over for use in subsequent years. PPOs operate under agreements between providers and managed care organizations to provide health care at reduced rates. Care can be provided in an insurance company’s network or outside of it. However, insurance companies require enrollees to pay more out-of-pocket expenses if they select out-of-network providers.