There’s more to the story than HMO, PPO and POS when you’re comparing individual insurance quotes, and prices vary from state to state, so the price in Ohio may be different than KY. Before we discuss finding the best rates let’s talk types of insurance. Another type of plan is the HSA or the Health Saving Account. An HSA is an account in which you save money to pay for your future or current medical needs.

The nice thing about an HSA is that anyone who is not already covered by another plan (exceptions apply for things like dental and vision insurance) can start one. Also, there are no income requirements for starting an HSA, and the money you withdraw for your medical expenses is tax free. Your employer can even contribute money to your HSA.

There are, however, a couple of restrictions. In order to start an HSA, you have to carry a HDHP or a High Deductible Health Plan. This plan will pay for any medical bills you incur that go over and above what you have saved in your HSA. If you’re savvy, you can save all the money you would need for your entire HDHP deductible. Another restriction is that you must be under 65 to contribute to an HSA.

An HSA is nice for younger people or those in good health because they save the money they might be paying on premiums and use it to pay actual medical expenses. If, however, you require frequent medical attention or take maintenance medications (medications taken every month), this plan may not be for you. 

Starting an HSA is easy. Just go to any lending institution (credit union, bank) or insurance company. You may even be able to start an HSA through your employer during open enrollment. Sometimes insurance companies will allow you to start your HDHP and begin an HSA at the same time.

An HSA with an HDHP is just another way to cover your individual insurance needs. When choosing a plan, whether it be an HSA, HMO, PPO or POS, you want the best rate and the best way to do that is to compare, compare, compare.