The Perplexing Psychology Of Saving For Health Care

A health savings account works much like a personal savings account — with a difference. Any money in it that we use to pay for certain medical expenses isn’t taxed.

Oivind Hovland/Ikon Images/Getty Images


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Oivind Hovland/Ikon Images/Getty Images

A health savings account works much like a personal savings account — with a difference. Any money in it that we use to pay for certain medical expenses isn’t taxed.

Oivind Hovland/Ikon Images/Getty Images

Spending your own money on health care might mean that you’ll be more frugal with it. That’s the theory behind health savings accounts, a decades-old GOP concept that’s sparking renewed interest on Capitol Hill as Republican lawmakers look for ways to replace the Affordable Care Act.

HSAs are like personal savings accounts — with a difference. As with a retirement account, money put into an HSA can be invested, and any growth in the fund accumulates tax-free. Withdrawals can be made at any time, and they are tax-free, too — but the money can be used only to pay for certain medical expenses,

Article source: http://www.npr.org/sections/health-shots/2017/02/15/515038556/the-perplexing-psychology-of-saving-for-health-care?utm_medium=RSS&utm_campaign=affordablecareact

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