Another benefit of having a high-deductible health plan is that it makes you eligible for a health savings account (HSA) that enables you to pay for qualified medical expenses tax free.

The funds you contribute to your HSA, up to the annual contribution limit, are not taxed. That means you can save up to $300 on taxes for every $1,000 you contribute. When you use your HSA funds to pay for qualified medical expenses, such as office visits, prescriptions, lab tests, hospital stays, medical procedures and much more, the withdrawals are also not taxed. For a list of qualified medical expenses visit www.irs.gov and reference Publication 502.

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