Freelancers slash health insurance costs with secret strategy

Exploring Health Savings Accounts (HSAs)

Another powerful tool in the freelancer's arsenal is the Health Savings Account (HSA). An HSA allows individuals to set aside pre-tax dollars for medical expenses, reducing taxable income and effectively lowering overall healthcare costs. Contributions to an HSA are tax-deductible, and the funds can be used for a wide range of medical expenses, including deductibles and prescriptions. The IRS allows individuals to contribute up to $3,650 annually for self-only coverage, and $7,300 for family coverage in 2023².