During open enrollment, HSA-compatible health plans are worth considering, especially if you’re looking for ways to manage your healthcare expenses.
These plans typically pair a qualifying high-deductible health plan (HDHP) with the opportunity to contribute to a Health Savings Account (HSA). An HSA allows eligible individuals to set aside money for qualified medical expenses while receiving certain federal tax benefits.
HSA-compatible plans often have lower monthly premiums than traditional plans with lower deductibles. However, you may pay more out of pocket for medical services before the plan begins sharing certain costs. Many preventive services are covered before you meet the deductible when you receive them in-network.
One of the biggest advantages of an HSA is flexibility. You can use money contributed to the account for qualified healthcare expenses, including deductibles, copays, coinsurance, prescriptions, and other medical costs. Unlike a traditional Flexible Spending Account (FSA), unused HSA funds roll over from year to year. You own the account, and it stays with you even if you change jobs or health plans.