Control spending, build savings with a Health Savings Account

Control costs and build savings with an HSA-qualified plan

Health insurance premiums might be giving you sticker shock, so you’re likely looking for the most affordable way to stay covered. You may even be considering going without coverage and hoping you stay healthy all year—or that your friends can cover your bills with a crowdfunding campaign.

But skipping coverage and hoping for the best isn’t the answer, because medical emergencies don’t wait. Instead of taking that risk, consider an option that can help you balance premiums and out-of-pocket costs—while saving for the future—by saving money in a special tax-free account.

A Health Savings Account (HSA) lets you set aside money on a pre-tax basis to pay for most medical expenses. You can use this money for copayments, coinsurance, and other out-of-pocket costs, which could lower your overall health care spending. You can’t use HSA funds to pay premiums, but you could use them to cover membership fees at a direct primary care practice. Any unused money collects interest and rolls over from year to year, and when you turn 65, you can use it for anything you want.  One warning: If you use it for non-medical expenses, that money counts as income when you file your taxes.

A short primer on how HSA-qualified plans work

To open an HSA, you must enroll in a high-deductible health plan (HDHP), like a traditional HSA or Bronze plan. In the past, traditional HSA plans couldn’t pay benefits before you met your deductible. For 2026, a recently enacted federal law makes all Marketplace Bronze health plans HSA-friendly, even when they cover things like doctor visits or prescriptions or allow copays before you meet your deductible. This makes it easier to lower out-of-pocket costs while building a tax-free nest egg for medical expenses. 

The IRS sets annual limits on how much you can put into your account and how you can spend your money. Community Health Options can help you choose a plan, and you can work with your bank, broker or financial advisor to set up your HSA account. You can also choose a plan through CoverME.gov.

If you get insurance at work, you might be able to contribute to an HSA through direct deposit right from your paycheck. Your employer might even contribute some money to your account, giving you extra savings.

There’s a trade-off. With lower premiums, you’ll face a higher deductible and less certainty when you get sick. That is, you could get a hefty bill before insurance starts paying and before you have built up your HSA savings. Before choosing any plan, it’s a good idea to estimate how much you might spend on medical costs in the coming year.

Who gets the most from an HSA?

This strategy might be for you if:

• You are healthy, take few medications and don't expect high medical costs.
• You see a doctor occasionally and use your HSA mainly for savings.
• You want lower health plan premiums, tax-free savings and can handle higher deductibles.
• Your employer contributes to your account, giving you fee money toward care.
• You have a higher income, may not quality for tax credits, and can afford both your deductible and HSA contributions.

Who might struggle with an HSA?

This choice might not be for you if:

• You have chronic health conditions and will hit your deductible quickly. Even though copays can help with out-of-pocket costs, a lower-deductible plan may be easier to manage.
• You don't have enough savings to cover a surprise bill, since you still face costs before insurance starts to pay.
• You're unable to keep up with household bills, paying your premium, and meeting a high deductible while making regular HSA contributions, even with tax breaks.

High-deductible plans aren’t for everyone. If you are looking for a new plan or have questions about getting an HSA-qualified plan, schedule time to talk with one of our experts. You can also speak with your trusted broker or financial advisor to see what kind of plan best meets your needs. For more about how HSA-eligible plans work and get links to IRS resources, visit healthcare.gov. 

If you have questions about your current plan and coverage, please call our Maine-based Member Services team at (855) 624-6463.