Opening a Health Savings Account (HSA) can greatly help in paying for rising medical expenses. Amounts contributed into a HSA reduce your taxable income. Earnings will not be reported as taxable income. Withdrawals made towards qualified medical expenses will also be tax-free (non-medical expenses are subject to penalties). This can provide a nice reduction to your federal income tax bill. Although withdrawals can only be made for qualified medical expenses, after you reach 65, all the funds can be used for any purpose (retirement supplement).
For additional information and to see if you qualify, check out this publication on the IRS website: https://www.irs.gov/publications/p969/ar02.html
