A Section 125 Health Savings Account (HSA) allows employees to set aside pre-tax dollars for qualified medical expenses, reducing their taxable income and saving money. Employers also benefit by saving on payroll taxes. These accounts offer flexibility, tax advantages, and help manage rising healthcare costs. When paired with a high-deductible health plan, an HSA under Section 125 becomes a powerful tool for both short-term medical expenses and long-term savings, making it a smart choice for employee benefits planning.