Health Insurance Plans vs. Health Savings Accounts
You may have heard about a health savings account and how it can occasionally be used in lieu of a traditional health insurance plan. While this is technically true, there are a few reasons why a traditional health insurance plan is preferable. A health savings account is a tax-advantaged bank account that remains in your possession and can be used for health care expenses. It’s very similar to an educational savings account or a tax-advantaged retirement account. The Benefits of a Health Savings Account Some individuals prefer a health savings account because it leaves them in charge of their own money; they still are in possession of their money rather than an insurance provider. A health savings account does not entirely preclude the use of an insurance plan; a high-deductible insurance plan is usually still included. Health savings accounts may be beneficial to those who are healthy and who remain
