A Health Savings Account is like a regular savings account except that it allows you to save pre-tax income for health related purposes only. In order to qualify for a health savings account, you must already be covered under a high-deductible plan that will cover your medical costs if they are very expensive and you cannot pay them (ie. if you are involved in a traumatic accident and require a costly hospital stay. A high-deductible plan is used mainly for these type of catastrophic accidents as it does not cover the first few thousand dollars of medical expenses). A health savings account is beneficial as it allows the consumer to be in control of their own money and choose how to spend it, as opposed to letting the insurance company decide how to spend it.
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