Shop Around for Health Savings Accounts

If every penny you spent on health care came out of your own pocket, two things would happen.

First, you'd be more interested and involved in your treatment, questioning the cost and necessity for every medical procedure.

And second, you'd take better care of your health, knowing that being overweight or smoking or not exercising is bound to be costly to your own financial future.

That's the appeal of Health Savings Accounts. They let people keep the money they don't spend on medical costs -- in an account that grows tax-deferred every year, to pay for future medical expenses. And the money they do spend for medical expenses is paid out of the account on a pre-tax basis.

The savings account is combined with a high-deductible insurance policy that costs less than traditional policies, but does cover major medical expenses. Employers may use some of the money they save on premiums to contribute to their employees' HSAs.

In 2007, individuals can set aside a tax-deductible contribution to HSAs of up to $2,850, or $5,650 for a family. (Those age 55 and older can contribute an extra $800.) But you don't have to be an employee of a big company to access an HSA and the related high-deductible insurance policy. Just go online to www.ehealthinsurance.com and click on the option to find Health Savings Accounts. Or you can call them at 800-977-8860 to get help in the process.