What if there was a way you could set aside pre-tax dollars into a special account to cover specific medical needs? You can, with a Health Savings Account! 

A Health Savings Account (HSA) is only offered with high deductible health insurance plans. It's a tax-advantaged savings account that you can use for qualified health care expenses. Consider it a portable bank account in your name to use for qualifying medical expenses.

With a high deductible insurance plan, you pay a lower premium, but you're responsible for the bulk of your health care costs until you reach your deductible. After that, your health insurance plan begins to pay for services. 

An HSA is an account you use to save, manage, invest, and pay for qualifying medical expenses for you and your family, but there are some important details to know first: 

• You can only use an HSA if you have a high deductible health plan (HDHP)
• The HSA funds remain in your account until the funds are gone, and the balance rolls over annually
• The funds can be used for non-medical expenses after the age of 65
• HSA contributions are not subject to federal income tax
• You can invest the money in your account 
• Your earnings in your account grow tax-free  
• Max contributions per year are $3650 for an individual and $7300 for a family in 2022 
• If you are age 50 over older, you can contribute an additional $1000 per year
• The funds can be spent on IRS-approved medical/vision/dental expenses for participants and qualified dependents 

Advantages and Disadvantages

HSAs have advantages and disadvantages. If you're generally healthy and want to save for future health care expenses, an HSA is a great choice to receive the tax advantages and possibly lower premium for coverage. If you're nearing retirement, an HSA may make sense since you can use the money to offset the costs of medical care after retirement.

A potential disadvantage of the HSA is that you have to have a high deductible medical plan to qualify, which may not be the best fit for everyone. Suppose you think you might need expensive medical care in the next year and would find it difficult to meet a high deductible. In that case, an HSA and high-deductible health plan might not be worth the tax advantages for your financial situation. 

Remember, if you don't use the funds, they're yours until you do. It's a portable bank account for medical expenses; the money is yours! You can take it with you if you switch jobs or retire. 

Overall, participating in a Health Savings Account should be an individual choice based on your medical and financial situation. Be sure to weigh all your options when determining if a high deductible medical plan and HSA fit your family best.