Saving for Your Health

One way to ensure you can pay your hospital bill next month is with a health savings account. Don’t know what this is? Basically, it’s an account created at your workplace in which money from your check is automatically deposited, with the intent of using it for medical bills. The money isn’t automatically withdrawn; this is a program you sign up for. Health savings plans have been in effect since 2003, when President Bush signed the bill.

It works like this; you go to the doctor and then present the receipt to your workplace and they then cut you a check for that amount from your health savings plan. Why is this great? For one thing, it’s tax free money. This means it is taken out of your check before taxes. Secondly, you don’t need insurance for this program. In fact, it was created for those without insurance! You can use it for regular doctor’s visits, specialists, emergency room visits and even hospital stays. It’s not just for medical purposes, however. It can be used to repay dentist bills and optometrist bills as well.

The health savings account is wonderful for those who have to see specialists that their normal insurance won’t cover. Because this account belongs to you, the consumer, should you change jobs it goes with you. Also, you can ease the cost of health insurance premiums by switching to an insurance plan with a higher deductible; the health savings account can cover the high deductible for you.