IRS allowed, High Deductible Health Plans or HDHP in combination with a Health Savings Account or HSA. These plans have higher than average deductibles with many advantages. This is a concept of self insuring for the small costs but having great coverage for the catastrophic expenses.
The HSA is like having a tax deductible account for your medical expenses or in other words a medical IRA. This is because the IRS allows people with this type of plan to tax deduct amounts to go into their HSA and use those “tax deducted and tax deferred” monies to pay for their medical expenses. Unlike a traditional “Flexible Spending Account” or “Cafeteria Plan” any amounts unused at the end of the year carry forward to following year.