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With healthcare being such a topic of debate and also confusion in the United States of America, it is important to have a firm grasp of how you can best avoid huge medical bills that place you into financial turmoil.
This is why many people choose to have a Health Savings Account (HSA) as these can help you save money for medical bills for both the current year and the future.
The main decision that people need to make centers around how much money they put into the account each year.
What is the best amount to put in to a Health Savings Account?
The simple truth is that it is best to put as much into your HSA each year as you can because there are a couple of advantages to doing so.
By maxing out the amount that you can contribute to your HSA each year, you can start to benefit from the Inland Revenue Services' triple tax advantages.
As well as that, unspent funds in the HSA are not taken away at the end of the year, so there is no way to lose money.
The money will stay there and can be used if you need it tomorrow, next year or way in the future.
A smart trick for your Health Savings Account
Another smart way of running your HSA is to think about saving the difference between two different premiums you could pay. Many employers offer both a traditional health plan and a high-deductible health plan.
Choosing the high deductible one could mean a monthly premium of 200 dollars in comparison to 400 dollars, but you could then add the extra 200 each month to your HSA and the money can just stay there.
Ultimately, different people will use their HAS differently, depending on their financial situations.