Health Savings Accounts

A health savings account is not insurance.  No one is guaranteeing payment for medical expenses. You are setting aside money for future medical expenses in a, oftentimes, tax free account. 

Health Savings Accounts (HSAs) work like this... You put aside $100 per month into your own account. This money is not taxed, but it can only be withdrawn for certain medical purposes. If later that year you visit the doctor, you pay out of your HSA for the costs. 

HSAs are often paired with Catastrophic Insurance to cover potentially large expenses. 

Critics of HSAs argue that these plans work well for wealthy Americans, but they do not work well at all for lower income people who might find setting aside the amount of money necessary on top of paying for Catastrophic insurance too much.  Critics also doubt Americans dedication to put aside money for health costs each month.