Health insurance can vary widely. There are so many types of insurance. HMOs, PPOs, POS. Enough to give you a headache, isn't it? Health insurance is a product you hope you never have to use. Especially when we are young, we may not even see the need for it. We can't predict the future, but we can plan for it.

A new type of health insurance called a "Health Savings Account" allows many to plan for the future better than ever before.

Have you read or heard about "Health Savings Accounts?" Essentially, a health savings account is really 2 things:
1) a "qualified" High Deductible Health Plan; and
2) a tax free "health savings account."

The qualified High Deductible Health Plan will often have significantly lower premiums than traditional insurance because it does not have "first dollar benefits."

The government allows you to fund your Health Savings Account with tax free dollars. The maximum annual contribution allowed into a Health Savings Account in 2008 is $2900 for those with single coverage or $5800 for those with family coverage and the catch up contribution for those over age 55 is $900 in 2008 and $1000 thereafter. If you don't use the money in a given year, it will roll over into the next year, and you can make an additional contribution for that year too. An HSA can allow you to
-lower premiums substantially;
-reduce your taxable income;
-use tax free money for health expenses;
-even use tax deferred money for non medical purposes after Medicare eligibility.

What type of health insurance fits your needs best? What factors are most important to you? Do you prefer a traditional policy with copays for doctor visits and prescriptions? Or, would a Health Savings Account fit your needs perfectly? See more about the different types of health insurance plans available to you:

Group
Individual
Short Term

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