Consider a health savings account

Can’t afford traditional health insurance?

If you are having trouble affording traditional health insurance, you may want to consider a health savings account (HSA). HSA accounts are an affordable health care option for the self-employed, unemployed, or those whose employers are cutting back on health care benefits.

In order to open an HSA account, the account holder must have a high deductible health plan (HDHP), but no other form of health insurance, including Medicare, and he cannot be a dependent on someone’s tax return. There are no income limitations for HSA accounts.

Money deposited in the HSA account can be used to pay a wide range of HSA-approved medical costs. Those who have HSA accounts enjoy the control they have in making health care choices, and the amount of money they choose to contribute.

HSA-based health plans aren’t perfect, but all contributed, unused funds belong to the account holder, tax-free. Although deposits are limited to an annual amount of $3,000 for singles and $5,950 for families (for 2009), the account can accrue until the account holder is 65. After that, the account holder can no longer contribute, but he can use the account to pay for approved medical expenses tax-free.

See the U.S. Treasury for more information about HSAs.