Health Savings Accounts are available to the tax paying residents of Idaho. Idaho law allows any taxpayer to reduce their income to $2,000 per year to be set aside to pay non-reimbursed medical expenses. The account must be established with a bank or savings institution before any medical expenses have been incurred. The account is not related to any health insurance plan. The employer is not involved.

The Federal Health Savings Account works the same way except a large deductible major medical policy that meets federal guidelines must be in place. Both the employer and the employee may put money into the account on a tax deductible basis.

In both plans, the money can carry over from year to year.