In this era of very complex (and very expensive) health care plans, a new one has emerged to help Americans get better care at a better value. This new type of plan is the Health Savings Account, otherwise known as an HSA.

So what exactly are HSAs?

Established by the Medicare reform bill and signed into law in December 2003, HSAs enable Americans to pay for near-term medical expenses while saving for future long-term costs with tax-free dollars. These accounts come with an HSA-qualified insurance policy that covers major medical expenses and preventive care. Where they differ from traditional health insurance policies is that these HSA-qualified insurance plans have lower premiums, higher deductibles, and the savings from the lower premiums goes to funding the HSA. Read the rest of this entry »