 TITLE: How Does Health Insurance Work? CONTENT: How to Save Money on Health Insurance\n-------------------------------------\nHealth insurance can be expensive, particularly when you're looking for a family health insurance plan.\nIf your employer offers a health insurance plan and pays part or all of your premium, that may be the most straightforward way to save money. Some employers may also offer you a discount on your portion of the premiums if you participate in wellness programs.\nMarried couples can also save by getting their health care plan through one spouse's employer. Being added to a health care plan may cause one spouse to have more taken out of their paycheck to cover the additional coverage, but the other spouse's job may bump up their pay since they're choosing to decline health coverage benefits. It's common for couples to ultimately come out ahead financially in this scenario.\nIf you're buying a plan directly from a provider or through the ACA Marketplace, a broker may help you compare your options and find the best one. You may also qualify for a premium tax credit for ACA Marketplace plans, which can lower your out-of-pocket cost for premiums.\nNo matter how you purchase your insurance, you may be able to choose from several plans that differ in terms of their coverage amounts and premiums. All else being equal, choosing a plan with a higher deductible typically leads to lower monthly premiums, which could save you money depending on how much care you need in the coming year.\nYou could also save money on health care expenses by using a tax-advantage flexible spending account (FSA) or health savings account (HSA).\n*   **An FSA** is an employee benefit that lets you set aside pretax money for qualifying medical expenses. However, the account is managed and owned by your employer, and you may lose money if you don't spend what's in it before the end of the year.\n*   **An HSA** is portable, meaning you own the account and it's not tied to your employer. HSAs offer triple tax benefits, as you may get a deduction for the contributions, money can grow tax-free inside the account, and you don't have to pay taxes on withdrawals you spend on qualifying medical expenses. However, you need to have a high-deductible health plan (HDHP) to qualify for an HSA.\nWhile neither of these will lower your health insurance premiums, they can lead to lower overall health care costs.\nWith costs and complexity in mind, you may be thinking of going without health insurance entirely, but that has serious risks. Without health insurance, you'll have to cover more of your medical expenses out of pocket. And while there's no longer a federal fine for not having health insurance, several states impose a penalty unless you qualify for an exemption. Not having insurance can even negatively affect your health, as those without health insurance are more likely to be hospitalized for preventable health issues and have a higher mortality rate than those with insurance, according to the Kaiser Family Foundation. END