PREVIOUS QUESTION:

 

NEXT QUESTION:

 

How can I save money with my high-deductible health insurance plan?

ANSWER

Consider starting a health savings account known as an HSA. An HSA is a type of investment account paired with a high-deductible health plan that allows you to pay for medical bills with money you've set aside tax free.

The money that you put into an HSA is not considered part of your income.

If you're self-employed you can make tax-deductible contributions to your HSA.

SOURCES:

American Public Health Association: "Why do we need the Affordable Care Act?" and "Medicaid expansion."

HealthCare.gov, "Young adult coverage;" "Medicaid;" "Health savings account (HSA);" "Flexible spending account (FSA);" "Tax Credits in 2014;" "Co-insurance;" and "Co-payment."

U.S. Department of Labor: "Young adults and the Affordable Care Act: Protecting young adults and eliminating burdens on families and businesses."

Families USA: "The young person's guide to health insurance for graduating seniors."

Henry J. Kaiser Foundation: "Explaining health care reform: Questions about health insurance subsidies" and "The requirement to buy coverage under the Affordable Care Act beginning in 2014."

U.S. Department of Health and Human Services: "2013 poverty guidelines" and "Health care law protects consumers against worst insurance practices."

Health Insurance 101: "Federal Subsides: Helping People Afford Health Care;" "Standardizing Health Plans;" and "What are high-deductible plans paired with a savings account?"

Caldwell, N. , Feb. 27, 2013; vol 8. PLoS One

Medicare.gov: "Medicare savings programs."

Reviewed by Sarah Goodell on November 08, 2018

SOURCES:

American Public Health Association: "Why do we need the Affordable Care Act?" and "Medicaid expansion."

HealthCare.gov, "Young adult coverage;" "Medicaid;" "Health savings account (HSA);" "Flexible spending account (FSA);" "Tax Credits in 2014;" "Co-insurance;" and "Co-payment."

U.S. Department of Labor: "Young adults and the Affordable Care Act: Protecting young adults and eliminating burdens on families and businesses."

Families USA: "The young person's guide to health insurance for graduating seniors."

Henry J. Kaiser Foundation: "Explaining health care reform: Questions about health insurance subsidies" and "The requirement to buy coverage under the Affordable Care Act beginning in 2014."

U.S. Department of Health and Human Services: "2013 poverty guidelines" and "Health care law protects consumers against worst insurance practices."

Health Insurance 101: "Federal Subsides: Helping People Afford Health Care;" "Standardizing Health Plans;" and "What are high-deductible plans paired with a savings account?"

Caldwell, N. , Feb. 27, 2013; vol 8. PLoS One

Medicare.gov: "Medicare savings programs."

Reviewed by Sarah Goodell on November 08, 2018

NEXT QUESTION:

How can I afford high healthcare costs even with Medicare?

WAS THIS ANSWER HELPFUL

THIS TOOL DOES NOT PROVIDE MEDICAL ADVICE. It is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional medical advice, diagnosis or treatment and should not be relied on to make decisions about your health. Never ignore professional medical advice in seeking treatment because of something you have read on the WebMD Site. If you think you may have a medical emergency, immediately call your doctor or dial 911.

    This tool does not provide medical advice. See additional information.

    Other Answers On: