Health Savings Account, worth it?
May 24, 2007 | General
I am a young, healthy individual with dependents who is currently enrolled in a PPO plan. Each month my employer and myself pay into my health plan. My family rarely uses medical care other than the normal preventative visits. An HSA with a high deductible health plan seems to be a better option for me. The HSA is tax free going in, accumulates tax free, and the money can be used tax free as long as it is spent on qualified medical expenses. If I stay informed about the real cost of health care and can find the best care at the lowest prices, with my preventative care being covered by my HDHP anyways, this sounds like a great way to save money for retirement in addition to my 401K. Are there any reason why an HSA would not be an excellent choice for myself and my family?
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Comment by wmrx May 24, 2007
Well having a family the only reason for not getting an HSA is having to build up your deductible right away.
If something were to happen at the start of your HSA that required a large deductible amount, it could really set you back. Some HSA’s offer a line of credit to help, but that is more debit and you start off upside down.
In my personal investigations it is best if you work for a company that is willing to match and offer an HSA to get you started. In the long run you will be better off. Especially, if your family is healthy and you rarely use the doctor. You will save a lot of money over time.
Comment by Eileen Martinez June 4, 2007
I am at the other end of the age spectrum. At sixty I still think the HSA model is for me. Although I will not eligible once on Medicare, the next five years will give me the opportunity of control my own healthcare dollars. Anytime you can be in control of how you spend your money is a win for the individual.
Comment by Scott Adams June 6, 2007
An HSA is better 100% if the time. I am a health insurance agent, and I sell HSA’s about 20% of the time. But if my clients are open to it, mathematically it makes sense 100% of the time. Most people don’t want to take the time to understand it.
Comment by Rick Treadway October 5, 2007
I’m in the process of getting health insurance, and I’m learning about HSA’s because I’m very unfamiliar with health insurance. However, from what I have been learning so far, it seems to make the most sense, and it almost seems to good to be true. Thank you very much for your website, so I can gather information to make a good decision.
Comment by JFRock April 22, 2008
The really compelling reason for HSA’s is the potential impact on the healthcare system of our country. By you and your family adopting a high deductibe health plan supported by a HSA you should realize a 20%-30% reduction in your health insurance premium. But look at it on a broader scale. A lower premium to you, means lower premium income to the insurance company. Those lower premium dollars don’t match up to high costs claims submitted to the insurers by the providers. So if you will then, just in the natural course of your family’s consumption of healthcare service, shop for price. Let your physician know this a financial decision you are going to make, don’t be afraid to ask “how much” and “where else can I get this done”. After all– you are paying the bill…or the premium. By shopping for your healthcare, you will also be submitting a “shopped” or lower priced claim to your insurance company, which may help to keep you insurance premium from continuing to rise. But more importantly, by you shopping you are helping others, because you are removing costs from the healthcare system. Lower costs in our healthcare system, should mean more people can have access to it, and pay for it. You are a good person. Sound crazy? How about you and me and the other 180 million us that Health Insurance carry out this little plan. I bet we can make costs disappear that the government, insurance companies, or providers couldn’t (and don’t want to) get done in a 100 years.
We do it everyday!
JFR
Comment by Tommy May 3, 2008
A few days ago, I saw some useful information in this blog providing a web address to find out Medicare rates for various procedures in different parts of the country. It was easy and extremely useful.
I am not seeing those blogs now. Have they been deliberately pulled out?
Can anyone provide the web address please? It was very handy for me to deal with my hospital.
Tommy
Comment by JFRock May 4, 2008
If you are familiar with CPT codes you can go to the CMS web site and down load virtually the entire fee schedule, or if you know who is the Medicare Intemediary in your area you can do the same thing. Otherwise go to the AMA website, put in your state and the procedure.
JFR
Comment by tips August 2, 2008
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