How To Save Money On Health Insurance Premiums Using HSA's

Opening a health savings account (HSA) can save you hundreds on your health insurance premium and help pay for out of pocket expenses and deductibles. Anyone younger than age 65 who buys a qualified health insurance policy with a deductible of at least $1,000 for individuals, $2,000 for families, can open an HSA. An HSA lets you set aside pretax money up to the amount of the deductible (with an annual maximum of $2,600 for singles; $5,150 for families). You can use the money tax-free for medical expenses, and anything left over grows tax-deferred. You can use the money for anything after age 65 without penalty, but you will owe income taxes on any money that isn't used for medical expenses.

In many cases, the cost savings from buying a high-deductible Health Insurance policy make up for the higher out-of-pocket medical expenses you'll have to pay -- not to mention the tax benefits.