Consumer driven healthcare doesn't really exist, but HSA accounts are really tax efficient

HSA's can be great retiree health savings accounts if used properly

If you have ever been to a Doctor's office and asked to see the bill, you know that uncomfortable feeling as the office administrator asks what plan you use, what codes were inputted during your visit, and what discounts might apply. None of us really can shop for healthcare yet because outside of a few facets of healthcare not covered under medical insurance (cosmetic surgery, LASIK, etc.), nobody really knows what anything costs.

HSA's (health savings accounts) were created in 2003. The idea was that consumers could use these accounts to pay medical costs and also invest any money that wasn't used in a given year. This money goes in tax deductible, grows tax deferred and can be used tax free if for qualifying reasons. While the limits of what can go in are pretty low ($4,300 for individuals and $8,550 for families in 2025), you can pay your costs as you go and invest this money to grow over time. If you do this for a few decades, you've really got something. These are more tax efficient then 401Ks, 403Bs and 457Bs.

As part of an overall financial plan, you should evaluate if one of these makes sense (and if you are eligible based off the health insurance plan you use).