Correct Response: C. A health savings account (HSA) is a medical savings account that allows employees to deposit money in the account without paying federal income tax on the money deposited. The employees can use these funds pay for out-of-pocket health expenses. Employers are not required to match the employee contribution (A), and employee contributions do not earn a high rate of government-backed interest (B). HSAs are only available to individuals who have a high deductible health plan (HDHP), so the deductibles are not lowered for members of these plans (D.
