A 25-year-old client receives health insurance from their employer. This client wants to save some money for future medical expenses. What plan should this customer use?

• A. A health savings account (HSA)
• B. A Point-of-Service plan (POS)
• C. A high-deductible health plan (HDHP)
• D. A health reimbursement arrangement (HRA)

Answer: (A)

Using an HSA lets you sock away money specifically for future medical costs with tax advantages. Contributions to an HSA reduce your taxable income, the money grows tax-free, and withdrawals used for qualified medical expenses are tax-free. It’s owned by you, so funds roll over year to year and stay with you if you change jobs. To contribute, you need to be enrolled in a high-deductible health plan, which is the type of plan that pairs with an HSA. The other options don’t provide this combination of tax-advantaged saving for medical costs: a plan type like a POS or a high-deductible plan is coverage or structure, not a personal savings vehicle; a health reimbursement arrangement is employer-funded, often not portable, and not owned by you.