What Are HSA's 1.) HSA's Help You Save On Health Insurance Costs HSAs were introduced to help you maximize your savings on health insurance while providing you with a valuable tax break.  An HSA health insurance program has two parts: a high-deductible health insurance plan, and a tax-favored savings account.  For an individual, an HSA-eligible health insurance plan must have an annual deductible of at least $1,000 --which means you'll have to pay the first $1,000 of medical expenses before your health coverage kicks in. This may sound like a lot of money, until you consider the cost of emergency or hospital services.  Your health plan will still provide meaningful protection in case of an injury or hospitalization, and many high-deductible health plans also include coverage for things like annual exams and preventive care.  Higher-deductible health insurance plans typically have lower monthly premiums.  In fact, with a deductible of at least $1,000, you can significantly reduce your monthly insurance premium, compared to many health plans with lower or no deductibles.  Click Here for an instant online HSA quote.  2.) HSA's Help You Accumulate Tax-Free Savings For The Future The second part of an HSA program is an IRA-style savings account that allows you to reduce your taxable income by growing your savings.   The best time to start an HSA savings account is generally in January, because you'll have the entire year to grow your savings.  You can deposit funds up to the total of your health plan's annual deductible into the HSA-account each year. So, within certain regulatory limits, the higher your health plan's deductible, the more you can tuck away tax-free. This means that if you make $40,000 a year and you put $2,000 in your HSA, you'll only pay taxes on $38,000.  What happens to that $2,000? Like an IRA, the HSA is meant to encourage you to save for retirement. Funds placed into your HSA can be invested to earn tax-free income and the balance will roll over from year to year until retirement age. But, unlike an IRA, you can withdraw your HSA funds to cover medical expenses at any time without penalty.  The funds in the account may be used to cover any qualifying medical expense, including over-the-counter drugs and eyeglasses, as well as co-payments and any medical costs incurred before your annual deductible is met. 3.) You Can Investigate HSA Plans Online -- Right Now! eHealthinsurance, the nation's leading provider of online health insurance policies, offers a range of HSA plans. Click Here to investigate these offerings.