Mention the idea of cheap medical insurance and most Arizona residents will laugh in your face. The very idea that medical coverage could still be cheap in this day and age is ludicrous - right? Well, until relatively recently that may have been true, but now there is a new form of medical coverage that could turn many people's healthcare world up-side-down and save them a ton of cash in the process.

The new form of coverage is a Health Savings Account, also known as an HSA. These are special savings accounts that are funded with cheap tax-free dollars. You use these cheap dollars to pay for all of your medical bills each year, and since you are paying for your own doctor's office visits, and paying for your own outpatient needs, and paying for your own specialists and paying for your own prescriptions, there is no one to tell you which doctors or what pharmacy you have to use. You are in full control of your own health care.

And since you are paying for everything with tax-free money you are saving the equivalent of approximately 25% on all of your costs.

Also, since you save money by needing medical treatment less, you have a tremendous incentive to stay healthy. You have an added reason to stop smoking or using chew and you have a great reason for skipping as many fast food meals as you can and watching your weight.

Another tremendous advantage to a Health Savings Account is that any cash left in the account at the end of a year can be rolled over into the next year. This means that over time you could build up a nice tax-free retirement nest egg - especially if you keep yourself healthy.

Obviously there are some things none of us have any control over - such as a totally unexpected catastrophic accident or illness. Such an event could wipe out our life savings or even force us to sell our home in virtually the blink of an eye.

Your Health Savings Account has you covered there, as well. You will be required to purchase a cheap super-high-deductible health insurance policy which will protect your assets if you should suffer a catastrophic event.