As funds are deducted pre-tax, you get favorable tax treatment and it may lower your tax bracket, but not necessarily always the case. Saving for medical expenses through an HSA is recommended as the amount in the HSA is yours even if you leave your employer, plus you will not pay any taxes on the amount as long as you use it for medical expenses.
At tax time, you will get a Form 1099-SA which will report the amount that you used during the year. You have to report the Form 1099-SA when you prepare your tax return.
You will also get a Form 5498, which will report your contributions and the Fair Market Value of your account at the end of the year.
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