Money: Save for Your Health

A new tax-free account helps you hedge against soaring medical costs

In their report released last week, trustees of the Social Security funds revealed that unless changes are made, the Medicare Trust Fund will no longer be able to pay all its benefits by 2019. The prognosis? If you're under 50 today, plan to pay for more of your medical care in retirement. The treatment? You may be able to boost your retirement health savings with a new prescription: health savings accounts (HSAs).

HSAs, authorized by last year's Medicare law, offer a tax-free way to save for current and future health-care needs. Unlike medical savings accounts (MSAs), which were limited to...

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