Health Savings Accounts are simple and easy to understand

Health Savings Account plan can give you coverage much like traditional health insurance, but it saves you money in three major areas.  First, HSA plan premiums are on the low end and these plans avoid the big rate hikes seen in other plans.  Second, you can deduct money you deposit in your HSA from your taxable income to reduce your tax bill.  And, third, HSA money that you don’t need for health or dental care can grow with tax-free earnings to build up your savings for retirement.

To get started, you need a health insurance plan that qualifies to be partnered with an HSA.  As soon as your HSA plan has become effective, you may make an HSA deposit and start collecting tax-free earnings.

HSA plans are available from several leading insurance companies depending upon where you live. The plans are all similar in that they have deductibles that are at least $1,200 for individual coverage or at least $2,400 for family coverage for 2012.  Annual out-of-pocket costs are capped (including deductibles and co-payments, but not premiums) at $6,050 for individuals or $12,100 for families.

Your HSA will allow you to legally avoid income tax by depositing up to $3,100 for individuals or $6,250 for families into your HSA in 2012. Whatever you deposit up to April 15, 2013 is considered an "above the line" tax deduction.  That just means you get a federal income tax deduction for your HSA contribution even if you take the standard deduction and don’t itemize deductions.

If your employer makes an HSA contribution for you, it is “excluded” from your income and not subject to any income tax or FICA. Either way, this will immediately reduce your federal income tax. All but three states also allow you to take a state income tax deduction for HSA contributions.  To see if your state offers tax deductions, please see our HSA State Income Tax page.

Get your HSA-qualified insurance plan as soon as possible so you can start growing your account with tax-free earnings. On our site, you will find comprehensive information on Health Savings Accounts, HSA trustees and administrators, and instant quotes on HSA-qualified health insurance plans at the guaranteed lowest rate available.

Opening your own HSA is Action Step #1 in our Complete Protection Strategy, but our analysis has revealed several other ways that you can get more coverage and pay less money.  When you know how to do it, you can cut thousands of dollars off your health care expenses every yearjust by being a smart shopper.  Take a minute to look at the other Action Steps to save even more money.

Blue Cross Blue Shield Banks on Health Savings Account Plans
Blue Cross Blue Shield members now have their own bank, but it won't help them if they're looking for an auto loan or a good rate on a CD. Blue Healthcare Bank's sole purpose is handling health care-related banking services, such as Health Savings Accounts. The bank is being set up by the Blue Cross and Blue Shield Association members, including Blue Cross of Idaho, one of the first four members to work with the bank.

Tax Benefits of Opening a Health Savings Account
HSAs were created to encourage people to save for future health problems, but there are other tax reasons to open such an account.

HealthPartners launches Empower HSA Rx Plus
HealthPartners is working to ensure that members who have a high-deductible health plan and a health savings account have more affordable access to preventive prescrip

Study: Savings and risks in health insurance trend
It's the hottest trend in job-based health insurance: plans that give you a personal savings account for medical bills but also require you to pay a hefty share of costs before coverage kicks in.

How Obamacare Will Make Health Savings Accounts More Costly
In February, the U.S. Department of Health and Human Services issued a "guidance bulletin" regarding the compatibility of health savings accounts with Obamacare's insurance regulations. According to HSA expert Roy Ramthun, the news isn't good. "HSA plans will not be as affordable as they are today," says Ramthun.

Health care savings strategies
It's inevitable -- as you age, your body requires more repair. But there are ways to lower your medical costs. .Money magazine gives you strategies to cut your costs by as much as 70% in six big areas ...

Blue Cross Blue Shield Approved to Start Health Savings Account Bank
Blue Cross Blue Shield has received federal approval to establish a savings bank that will be allowed to administer Health Savings Accounts.  Blue Cross Blue Shield said it had received assent from the Office of Thrift Supervision, a Treasury Department agency, to establish a federally insured savings bank to be based in Utah.  It will be called Blue Healthcare Bank.  Health Savings Accounts can be set up by consumers who have high-deductible insurance plans, and Blue Cross Blue Shield offers some of the most competitive HSA plans on the market.

Humana to Cap Health Savings Account Premiums for More Than One Year
After years of double-digit premium increases for employers providing health plans to workers, Humana and other insurers are trying a different approach: new health savings account plans that cap premium hikes at guaranteed low rates if buyers agree to a multiyear contract and workers absorb increases in deductibles.  Even doctors known to be skeptical of almost anything the health insurance industry suggests say they are intrigued with the health savings account idea - hoping it might be one remedy for unpredictable, rising health care costs.