Health insurance is expensive. You must go out of your way to find ways of purchasing coverage if your employer does not provide this.
Before we were eligible for Medicare, my wife and I used a Christian health expense sharing program. We never had to call on the program to provide payments. The premiums were extremely low.
If you are not eligible for such a program, then the best approach is to buy high-deductible health insurance. By self-insuring, you can buy lower-cost policies.
You need a savings program just in case you ever have to pay the deductible. The way to get this is through an HSA, or Health Savings Account. Any money in an HSA can be used to pay the deductible, and it is tax-free when you make the payment.
When you set up an HSA, you can deduct the money you contribute to the HSA from your taxable income, including FICA or Social Security tax. This is a tremendous bargain.
If you invest wisely, the built-up money in your HSA account is tax-free. This is another great advantage.
If your employer contributes to your HSA, this is not taxable. It is better to get your employer to do this than it is to get a raise. The raise is taxable.
An HSA is available only if you do not have health insurance from your employer.
I think an HSA is a better savings program than a regular IRA or 401(k) program. That's because you can get the money out for a qualified health expenditure without paying a penalty or a tax.
You should always discuss investment matters with your CPA, but the advantages of an HSA are described well in this brief article.
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