Which of the following is listed as a pro of HSAs?

• A. Lower monthly premium
• B. Decreased moral hazard
• C. Triple tax benefit
• D. None of the above

Answer: (C)

Health Savings Accounts are defined by a triple tax benefit: contributions can be deducted on your taxes or made with pre-tax dollars, the money grows tax-free, and withdrawals for qualified medical expenses are tax-free. This combination means you save tax at three stages—when you contribute, as it earns, and when you spend on eligible medical costs—making it a powerful pro of HSAs. Lower monthly premiums aren’t an inherent feature of the HSA itself (they’re tied more to the high-deductible plan you pair with the HSA and aren’t guaranteed), and moral hazard is a broader insurance concept rather than the defining tax advantage of the account.