Over the next 30 years the biggest strain on our country will come in the form of Health Care and Retirement Benefits for all the baby boomers who are reaching retirement age. When you graduate from college and get your first job you will want to find out if your new employer offers an option called a Health Savings Account.

In an effort to curb the growth in health care expenses HSAs were established as part of the Medicare Prescription Drug, Improvement, and Modernization Act which was signed into law by President George W. Bush on December 8, 2003.

The key aspect of the Health Savings Account is that it requires participants to purchase a High Deductible Health Plan with a deductible of at least $1200. These high deductible plans have a much lower premium than traditional health insurance coverage. The money you save can then be directed into a health savings account and your employer will often match your contribution as well. As a single person you can contribute up to $3050 per year (according to 2011 HSA Contribution Limits) and at the end of the year any money you haven’t used will roll over to the next year. As the money grows in your account you effectively eliminate the need to come up with any money out of pocket to meet deductibles or co-pays.

Since the money grows tax deferred and most banks offer various investment options it can not only cover your health care expenses but you can actually use the money for retirement when you reach age 65.

HSAs are not right for everyone, but it’s worth taking a look at them just so you know all the options that are available to you. Regardless of what type of career you choose, health care is going to play a major role in your future finances.