 TITLE: What to Know Before You Buy Health Insurance CONTENT: Consider a Health Care Savings Plan\n-----------------------------------\nLooking for ways to save on health insurance? You may be able to reduce the cost of premiums and health care by setting up a health care savings plan. There are two types of plans available: HSAs and HRAs.\nA **health savings account (HSA)** can be used to set aside pre-tax money you will use for qualified health care costs, such as copayments, coinsurance, medication and medical procedures. You must have a high deductible health plan (HDHP) to qualify for an HSA.\nYou may have access to an HSA through your job; if not, you can set up your own. For 2021, the maximum annual HSA contribution limit is $3,600 if you have individual coverage and $7,200 if you have family coverage. Because HSA contributions are deductible on your federal income tax, they may reduce your income enough to qualify you for Marketplace tax credits and subsidies. Some employers contribute to their employees' HSAs, which can lower your health care costs even more.\nA **health reimbursement arrangement (HRA)** is an account your employer opens for you. The employer contributes to your account; you can use the money for qualified health care costs, tax-free. There's no contribution limit, but you can't put money in the account yourself, so you'll be limited by how much your employer decides to contribute. And since your employer owns the HRA, you'll lose any money in the account if you lose or leave your job. END