The Coverage Corner

There are certain things that even the most budget conscious people should not consider cutting out completely to save money. Among these things is health insurance coverage. True, health care costs are rising at a much higher rate than the average American income, but going without coverage could prove to be a huge financial mistake in the event of a major illness or injury.

There is an extensive list of common out-of-pocket health care expenses that are tax deductible, provided the expenses exceed a certain percentage of one’s adjusted gross income (AGI). For years, that “certain percentage” has been 7.5 percent. The rules are set to change very soon, however.

A high deductible health plan (HDHP) can save you money. You read that right. In fact, it can save you even more money when paired with a Health Savings Account (HSA). So, what’s the connection?

How can a Health Savings Account benefit you?

Nobody wants to pay more for anything than they have to and this includes health care and health insurance. Health care costs are outpacing the rate of general inflation across the board and it is no wonder people are having trouble keeping up. Before you get too discouraged, consider your options for saving. Here are some common and effective ways of keeping costs as low as possible.