Since your deductible is higher, your premiums will usually be lower. You can put the money you save on premiums into an HSA to help pay for medical expenses up to your deductible.

Here’s how it works:

• You and/or your employer contribute pre-tax dollars to your HSA – up to $3,250 for individuals and $6,450 for a family in 2013. If you’re 55 or older, you can also make a “catch-up” contribution of up to $1,000.
• You can then use your HSA to pay for qualified medical expenses, like doctor’s visits and prescription drugs, tax-free.
• If you don’t use all the money in your HSA, it automatically rolls over to the next year and continues to accumulate.
• Interest or other earnings on the money in your account accumulate tax-free.
• You own the account, so you keep the money in your HSA even if you leave your employer or switch health plans. And after age 65, you can also use your HSA to pay for non-medical expenses.*

*Even at age 65 or older, HSA withdrawals for non-qualified medical expenses are subject to income tax.