How to Lower Your Obamacare Premium and Save Money on Health Insurance

If you’re like many Americans, you’re probably struggling to afford health insurance. The cost of health care has been rising steadily for years, and it shows no signs of slowing down. If you’re not careful, you could end up paying thousands of dollars per year for health insurance.

The good news is that there are several things you can do to lower your health insurance premium. One option is to sign up for a Health Savings Account (HSA). An HSA is a tax-advantaged savings account that you can use to pay for qualified medical expenses. HSAs can be a great way to save money on health care costs, and they can also help you lower your health insurance premium.

What is an HSA?

An HSA is a tax-advantaged savings account that allows you to set aside money for qualified medical expenses. HSAs are available to individuals who are enrolled in a high-deductible health plan (HDHP). HDHPs have higher deductibles than traditional health plans, but they also have lower premiums.

How much can I contribute to an HSA?

The amount you can contribute to an HSA depends on your HDHP’s deductible. For 2024, the maximum contribution limit for an individual is $3,850. The maximum contribution limit for a family is $7,750. If you are 55 or older, you can contribute an additional $1,000 per year.

What are the benefits of having an HSA?

There are many benefits to having an HSA. Some of the benefits include:

Tax-free contributions: Contributions to an HSA are made on a pre-tax basis, which means that they are not subject to federal income tax.
Tax-free earnings: The earnings on your HSA investments are also tax-free.
Tax-free withdrawals: Withdrawals from an HSA are tax-free if they are used to pay for qualified medical expenses.
Lower health insurance premiums: HSAs can help you lower your health insurance premium by reducing your MAGI. MAGI is the modified adjusted gross income used to determine your eligibility for premium subsidies.

How can I sign up for an HSA?

You can sign up for an HSA through your employer or through a private financial institution. If you sign up through your employer, your contributions will be deducted from your paycheck on a pre-tax basis. If you sign up through a private financial institution, you will need to make contributions to your HSA on your own.

If you’re looking for ways to lower your health insurance premium, an HSA is a great option. HSAs can provide you with a number of tax benefits, and they can also help you save money on your health care costs.