Most Americans get health insurance from their employers and never review their policy to learn the details of their health insurance benefits, dictating which medical providers they can use, and what their out of pocket expenses will be. It usually takes a health problem for the employee or a member of their family to bring the details to light, and by then, it's usually too late.

According to Paul Zane Pilzer's book, The New Health Insurance Solution, the lack of Affordable health insurance, and rising health care costs now consume almost one-sixth of America's economy, and during ones lifetime, medical and health insurance costs are likely to be the largest or second largest expense after housing. That's if a person is lucky enough to have health insurance. However, even if one has health insurance, the traditional employer-sponsored plan is likely the number one threat to an employee's financial future.

This statement is supported by a recent article published in the Detroit News citing a dramatic increase in the number of home foreclosures. Below is an excerpt:

"The first and most obvious reason so many homeowners are missing their mortgage payments would seem to be unemployment. Michigan posted one of the highest annual unemployment rates in

the nation last year, and it's expected to keep edging up in 2006. But while disappearing paychecks are a factor, so are the shrinking paychecks brought about by cuts in overtime or total hours worked, experts say. Divorce or prolonged illness often leads to foreclosures.”

"It's really three things: loss of income, reduction in income or substantial medical expenses," says Stuart Gold, a Southfield bankruptcy attorney as quoted in the Detroit News article.

Health Savings Accounts are an excellent way to offset the risks of bankruptcy due to catastrophic medical expenses and for individuals who remain relatively healthy and manage to accumulate funds in their HSAs, such accounts could be an important part of planning and saving for later-life health needs such as long-term care.

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