Health Savings Accounts (HSAs) are becoming quite popular for people who are generally healthy. But what about sick people? What about people who have chronic conditions like diabetes, multiple sclerosis or the like? Does an HSA make sense for them?

The short answer is yes.

One of my clients is a diabetic. She is very careful about what she eats and she takes her insulin regularly. She has a tremendous amount of energy and a great outlook on life. She's in her late fifties.

She asked me about the high-deductible health insurance policy and the HSA in my book. We began to work the numbers together.

With a high-deductible plan, she would definitely be paying out-of-pocket for insulin and other supplies every month, to the tune of over eighty dollars. But, on the other hand, she would save $250 on a reduced premium payment.

Once we did the calculation, she and I realized that it made perfect sense for her to switch to a high-deductible policy and use an HSA. Even after paying for her diabetic supplies, she was saving $170 every month, which amounted to $2,040 a year.

What could you do with $2,040 a year, given to you just for changing your insurance policy?

I can think of lots of uses. My client has also thought of lots of uses for that money, believe me! (I think she's saving it for a nest egg.)

Now, whenever she sees me, she points and says