Add a Health Savings Account (HSA) to your Colorado Health Plan

Originally enacted by President Bush as part of a Medicare bill, Health Savings Accounts (HSAs) were designed to help people save for future medical expenses on a tax-free basis.  In order to take advantage of this tax-free savings account, one must be covered by a High Deductible Health Plan (HDHP), which is generally less costly than a traditional Colorado health insurance plan. 

This novel approach to managing healthcare costs is a sensible alternative to traditional Colorado health plans, but it can also be a great way to pay for out-of-pocket health expenses that are not typically covered by any health plan. Once an HSA has been established, the account holder has complete control over how the money is spent.  For people who are generally healthy and don't want to make big insurance companies any richer, this might be the ideal way to pay for healthcare.

While the concept behind these plans makes perfect sense, HSAs and HDHP plans are not for everyone.  There is always the possibility that something catastrophic could occur before enough money is stashed away in the savings account.  Or, you could find that the amount of money in the account is insufficient to pay for excessive healthcare costs. 

Minimum deductibles for a compatible HDHP plan also apply, and there is a cap on annual out-of-pocket costs that can be drawn from an HSA, but overall the plan offers a lot more flexibility than the average Colorado health insurance plan.  Signing up for an HSA is easy; it can be done at banks, credit unions and with a Colorado insurance broker. 

Michael Horvat is a health insurance expert and broker with HealthQuotes.com in Colorado Springs, CO. If you are searching for Colorado health insurance plans or quotes, please give Michael a call anytime at 800-345-0789.