Imagine having a way to pay for health care expenses with pre-tax dollars, pay lower than average monthly premiums in most cases and use the same plan to save for retirement. HSA plans are leading the way in making health care more affordable for millions of uninsured Americans.

More and more of America's uninsured are now able to afford health insurance due to the lower premiums of HSA plans. According to America's Health Insurance Plans, (www.AHIPResearch.org) 31% of new coverage issued to the small group market was HSA coverage. Among individuals, 27% of all new health insurance plans were HSA's.

"If more American's knew the financial benefits HSA accounts offered, many of them would trade in their traditional PPO & HMO plans without hesitation" says Wilson.

HSA's are fairly new to the scene within the grand scope of the health care industry. They have only been available to the American public since January 2004. HSA's are often referred to as the 401(k) of the health care industry.

The HSA is a special health plan directly tied to a bank account which is used to pay for qualifying medical expenses. To qualify for an HSA plan, the applicant must be enrolled in a High Deductable Health Plan or HDHP. Contributions into the HSA account can be made by an employer, the employee/individual, or both.

All funds paid into an HSA account are owned and administered by the individual owner and not the employer nor the bank. Currently the maximum annual contribution into your HSA account is $2,900. for individuals and $5,800. for a family. If the plan owner is age 55 or older, "catch-up" contributions can be made until they enroll in Medicare.

Contributions to an HSA account roll over annually, with interest and/or investment earnings compounding on a tax free basis, just like a 401(k) or IRA account. However, unlike a 401(k) or IRA account, the HSA has the potential to save three times as much on taxes. Account owners are able to make tax free contributions to the account. All interest & investment earnings are tax deductable. Distributions for qualified medical expenses are also tax deductable.

HSA's can be funded with an IRA account (except a SEP IRA). This transaction must be a direct trustee-to-trustee transfer. The IRA to HSA transfer may only take place once per lifetime. The only exception to this rule is if the contributing individual switches from a self-only to a family plan. An HSA account may not be used to fund an IRA nor any other type account.

HSA's are portable; this means the account goes with the owner in the event of a job change, unemployment or self-employment. HSA plans are not available to individuals who have recently received health benefits from the Veterans Administration.

HSA plans are also not available to individuals enrolled in Tricare. All funds remaining in the HSA account after age 65 (or if the account owner becomes disabled) can be withdrawn for any purpose, even non-medical reasons without incurring the 10% IRS penalty.

A Health Savings Account is a powerful financial tool intended to empower the owner toward becoming more actively involved in their health care decisions. Sounds to good to be true? Absolutely not! HSA's are steadily growing in popularity as more and more American's realize the numerous benefits they offer. HSA plans are making health care more affordable for the uninsured.