The below content is provided by Gallagher, our exclusive health coverage partner. Learn more about Gallagher’s services for Authors Guild members here.

As federal subsidies expired at the end of 2025 and returned to pre-COVID levels, many individuals selected high-deductible health plans to help keep monthly costs down. While these plans often offer lower premiums, they can also result in higher out-of-pocket expenses when care is needed. One way to better manage these costs is by pairing your plan with a Health Savings Account (HSA).

Many people are now choosing lower monthly premiums, which typically means taking on a higher deductible.

• Deductible: The amount you pay out of pocket before your insurance begins to share costs
• Premium: The monthly amount you pay to maintain your health insurance coverage

If you find yourself in this situation, an HSA can be a helpful tool for covering medical expenses. An HSA allows you to set aside pre-tax dollars to pay for qualified healthcare costs, including doctor visits, prescriptions, and certain over-the-counter products.

Here are some helpful tips to make the most of an HSA and manage healthcare costs:

1. Check your eligibility
   To open an HSA, you must be enrolled in a qualifying high-deductible health plan. Many bronze or catastrophic plans may be eligible. An HSA acts like a dedicated healthcare savings account; contributions are made with pre-tax dollars, which can help reduce your taxable income. Funds can be used for current expenses or saved over time to build a cushion for future healthcare needs. While HSA funds generally can’t be used for monthly premiums, the account is yours to keep even if you change jobs or plans.
2. Understand how to open and fund your account
   HSAs are offered through banks and financial institutions and typically come with a debit card for easy access. You can open an account at any time during the year, as long as you are enrolled in an eligible plan. Contributions don’t have to be large—consistent, smaller amounts can still make a meaningful difference over time. There are annual contribution limits: currently $4,400 for individuals and $8,750 for families.
3. Take advantage of preventive care
   Most health plans are required to cover certain preventive services including annual checkups, screenings, and vaccines at no cost when you use in-network providers. Staying on top of preventive care can help you avoid more costly health issues later.
4. Be mindful of timing
   Deductibles typically reset at the start of each calendar year. If you expect to need care, understanding your deductible status can help you plan expenses and avoid surprises.
5. Ask about costs ahead of time
   Healthcare costs can vary widely. You have the right to request an itemized estimate before receiving services. In some cases, providers may offer lower pricing if you choose to pay out of pocket, so it can be worthwhile to compare options.
6. Keep your information up to date
   If you have coverage through a marketplace plan and receive financial assistance, it’s important to report income changes promptly. Inaccurate or outdated information could result in unexpected costs when you file your taxes.

Choosing and managing a health plan can feel complex but understanding how your plan works and how tools like an HSA can support you can make a meaningful difference.

Authors Guild members have access to Gallagher’s concierge service as an exclusive benefit. A licensed broker can help you evaluate your options and build a coverage approach that aligns with your situation. Get started here.