The ins and outs of high-deductible plans.

• Position: HSAs

More than 12,000,000 Americans currently are covered by high-deductible health plans with a health savings account (HSA) feature. That is up from 8,000,000 in January 2009 and 6,100,000 in 2008. A report by the Kaiser Family Foundation and the Health Research & Educational Trust points out that the number of workers with high-deductible plans has tripled in firms with fewer than 200 employees since 2006 to a total nearing 14,000,000.

The advantage is that these companion policies allow individuals and families to keep monthly premiums relatively low while being able to deposit pretax dollars into HSA accounts. The HSA enables individuals to use those pretax dollars to pay out-of-pocket medical costs. Earnings on those accounts also are tax-free, as are withdrawals used for qualified medical expenses.

Yet, is this choice right for you? Here are some considerations provided by the Financial Planning Association, Denver, Colo.

* HSAs only are available with qualified high-deductible health insurance policies. To get the combo, you must be enrolled in a qualified health insurance plan with an IRS-required deductible of at least $1,200 for an individual or $2,400 for a family. In 2011, individuals may contribute a maximum of $3,050 to a HSA and families can deposit up to $6,150.

* Check lifetime limits for claims (do not go under $5,000,000) and make sure the health plan provides first-dollar coverage on preventative care because the new health care law requires it. If you have a particular health history, it may be tougher to qualify for that insurance.

* HSA accounts are offered at banks and other types of financial institutions. You will be charged a one-time setup fee of anywhere from $25 to $75 and annual fees that might be as much. Since these are investment accounts, fees potentially might eat up any gains you will earn, so keep them as low as possible. While many employers pick up these fees...