Health Savings Accounts: Find Out What's New, And 12 Best Accounts For 2021

ADELIA CELLINI LINECKER | Originally posted on IBD

Rarely has health care been more top of mind than now, as Covid-19 ravages the U.S. and hospital costs shoot up. A health savings account (HSA) could help pay for those costs, and knowing what the best HSA accounts are for your particular situation could help you get the most benefit possible.

The average cost of hospital care for Covid patients ranges from about $51,000 to nearly $79,000, depending on age and insurance coverage, according to FAIR Health, a nonprofit that tracks health care costs. The highest average amount paid by private insurance was about $40,000 for people over 60 and lowest for patients between 21 and 40 at just over $21,000. That leaves a large chunk that patients must pay out of pocket.

"HSAs have become more of a lifeline to people than they thought they ever would be," said HSA expert Roy Ramthun, known as Mr. HSA. "The good thing is that a lot of the expenses they are incurring are going to be able to be reimbursed through their HSA."

An HSA is a type of savings account that lets you set aside pretax-money to pay for qualified medical expenses. You can use the funds to pay for deductibles, co-payments, coinsurance and other health care expenses.