How to Open a Health Savings Account

With the astronomical rise in the cost of health insurance, many families are looking for ways to save money on their family's health care. A relatively new option available to some families is the health savings account (HSA). Opening an HSA is easy and it may save your family lots of money.

Instructions

• 1

  Determine if you are eligible for a HSA. You must be under age 65 and live in a state that accepts HSAs. You'll need to sign up for 12 months of insurance and can't be covered by another insurance policy, unless it's a qualifying high deductible plan.

• 2

  Decide if an HSA is right for you based on your health needs. HSAs are good for health people who do not have chronic conditions that require ongoing treatment.

• 3

  Analyze your financial status. You'll need money to deposit into your savings account. If you don't have money to deposit, then you won't benefit from a HSA.

• 4

  Find an HSA plan on your own or through your employer. Your employer may have HSAs available during the open enrollment period. If you are an individual, you can apply at any time.

• 5

  Open an HSA once your qualifying insurance is in place. HSAs can be opened with any qualified trustee or custodian. Many banks and investment houses offer HSAs, but be sure to shop around to find the lowest fees.

• 6

  Consider joining a PPO discount savings plan to reduce your medical costs. These plans offer a discount on various services, including medical treatments, prescriptions, dental and vision.