If you work for a large corporation you probably get a huge folder every fall with literature trying to explain a plethora of health plans to choose for yourself or family.

There are three common types of health insurance plans and any of them can be combined with a high deductible health insurance plan to qualify for an HSA.

Most employers will offer at least one of these plans in combination with an HSA in the coming year.

Here is a brief description of each type on health insurance plan.

Indemnity Plan or Fee for Service plan

The most popular feature of this type of insurance is that you can choose where to go for medical care.  The downside is, this is usually the most expensive type of insurance.

Health Maintenance Organizations HMO’S or prepaid health insurance plans

The biggest advantage of an HMO is that all of the paperwork is taken care of between the providers and the insurance company.  The downside is in order to have the medical expenses covered, you need to go facilities contracted or owned by the HMO.  To have such limited choice can be frightening to many people .

Preferred Provider Organization (PPO)

A type of insurance that combines elements of both the managed care and indemnity plans.  If you choose a physician and facility from the preferred list you will pay lower costs than if you go outside the network.  This plan does offer the extra security that you can go outside their network if you really need to and still be covered by health insurance.

It's important to look for an HDHP that will cover expenses at 100% after the deductible has been met.  Since you only can contribute up to the deductible amount into the HSA, you'll want to minimize any expenses after this amount.  Expenses after the deductible is met will be paid with after tax dollars.   For more information on types of health Insurance plans go to http://www.ahrq.gov/consumer/insuranc.htm