Final answer:
Health Savings Accounts (HSAs) are commonly used with High-deductible health plans (HDHPs) to help individuals save for medical expenses tax-free. They are not typically paired with HMOs or Medicare plans.
Step-by-step explanation:
Health Savings Accounts (HSAs) are financial tools designed to help individuals save for medical expenses. The correct answer to the question regarding which type of health plan HSAs are frequently used with is C. High-deductible health plans (HDHPs). HSAs are intended to accompany HDHPs to allow policyholders to save money tax-free for eligible health expenses. The deductible is the amount that insurance policyholders must pay out of pocket before insurance coverage begins. High-deductible plans have higher deductibles, making them suitable for pairing with an HSA.
Fee-for-service arrangements, where medical care providers are reimbursed for the services they provide, contrast with Health Maintenance Organizations (HMOs), which receive a fixed fee per enrolled person, regardless of services rendered. HMOs typically manage care more directly and do not pair with HSAs as commonly as HDHPs do. Also, it is important to note that HSAs are not typically used with Medicare, which primarily offers insurance to individuals over sixty-five years old and has its own set of supplementary and prescription plans.