If you have been looking for health care coverage and have not yet been able to find good quality coverage, you may have heard the term Health Savings Account (HSA). A HSA is a new advantage being offered to Americans to offset the costs of health care. The health savings account has become a way where you can save your money and use it for health care, and still get lower premiums on your health care coverage. How this works is that you put money aside into your tax sheltered HSA, and then you purchase lower cost health coverage with high deductibles. If an emergency arises, or you need health care, you then use the funds from your HAS to cover the cost of your deductibles and your insurance company will pay the rest. For Americans that can afford to put a little bit away, this has become a very cost effective way to get the most affordable and comprehensive health care coverage.

The Health Savings Account became a part of American legislation in 2003, but it came in conjunction with the prescription drug benefits through Medicare, so not many Americans really took advantage of this program. With health care costs on the rise up to 30% every single year, this has become a means for any American to put money away into an account that earns interest and can be used for medical expenses. And with health care reform pending, it is a very logical way to get in on lower premiums with an insurance company now, even if that comes at the cost of high deductibles.

Americans can today put as much as $3,000 into their HSA every year, and you can use this money to pay for any medical expenses that would not be covered by your insurance policy. This would include co-payments or an increased deductible. You can also use your HSA for expenses that normally wouldn't be covered by your health coverage such as dental, eyeglasses, chiropractors, and even over the counter medication. When you consider how costs can add up for an American family for eyewear, dental work, co-pays, and even cold and flu medication, $3000 annually in a separate account does not seem like much. In addition, you get the added benefit of comprehensive health coverage at lower premiums so long as your HSA can handle the cost of the high deductible.

What many Americans do not understand about the health savings account is that it is your money and technically, you can do what you want with it. It can be withdrawn at any time for any purpose. If you choose to use it for medical expenses, it will be tax free income for you to use as it was intended. If your family experiences financial duress or emergency, you can still use this money for other purposes not medically related, but you will incur a tax penalty.

If you or your family does not use health care or require too much health insurance coverage, you can take advantage of the tax sheltered HSA opportunities to cover the basics of your health care needs. In addition, you will qualify for cheap health insurance with high deductibles that will make health care one of your most affordable family expenses. When you are looking for health insurance quotes and have the health savings account behind you, you know you are in the best position to get the best and most affordable health care possible.