HSA'S (Health Savings Account)
- Thread starter ginwoman
- Start date
somdfunguy
not impressed
Wirelessly posted (Samsung Galaxy S III )
I do, my employer contributed money and so did I. I've had it the last few years so I had a nice balance built up. This year I changed insurance plans (had a baby) so I'm not allowed to contribute but I can still use the money. I have a debit card for my account that I will use at the ATM to withdraw cash with and move to my checking. Came in helpful for paying of all the bills. You can also use it as a credit card but I prefer to use my Amex to build vacation points.
I do, my employer contributed money and so did I. I've had it the last few years so I had a nice balance built up. This year I changed insurance plans (had a baby) so I'm not allowed to contribute but I can still use the money. I have a debit card for my account that I will use at the ATM to withdraw cash with and move to my checking. Came in helpful for paying of all the bills. You can also use it as a credit card but I prefer to use my Amex to build vacation points.
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Baja28
Obama destroyed America
Your employer (and you) can contribute $$ to the account. It is your money. I think my employer puts in $1,200.00 and I use it for co-pay on Rx.
Be aware of the expected changes though...its still grey but everything I've read (like at the link) suggests that HSA's won't be around much longer.
ObamaCare Putting Squeeze on Health Savings Accounts
ObamaCare Putting Squeeze on Health Savings Accounts
ProfMoneyWise
Member
Publication 969 (2011), Health Savings Accounts and Other Tax-Favored Health Plans
If you are relatively healthy HSA is the way to go. It's like a medical 401K. The money put in is yours and it rolls over from year to year and at the age of 65 the funds can be used by you for anything (i.e. does not have to be medical).
The HSA is tied to a high deductible type plan and the premium is lower than a lower deductible plan. With an HSA you are assuming more of the deductible (i.e. risk) so the insurance companies exposure (risk) is lower. Hence the lower premium.
If you go this route you would need to have a Medical Emergency Fund ready to cover you in the amount of your plans deductible limit. The need for the fund will diminish as your balance in the HSA grows.
Go google around on who should/should not consider the HSA. Someone with with a chronic illness should not consider it for example.
If you are relatively healthy HSA is the way to go. It's like a medical 401K. The money put in is yours and it rolls over from year to year and at the age of 65 the funds can be used by you for anything (i.e. does not have to be medical).
The HSA is tied to a high deductible type plan and the premium is lower than a lower deductible plan. With an HSA you are assuming more of the deductible (i.e. risk) so the insurance companies exposure (risk) is lower. Hence the lower premium.
If you go this route you would need to have a Medical Emergency Fund ready to cover you in the amount of your plans deductible limit. The need for the fund will diminish as your balance in the HSA grows.
Go google around on who should/should not consider the HSA. Someone with with a chronic illness should not consider it for example.
ProfMoneyWise
Member
Another feature of an HSA is "cash."
A Doctor knowing he will be paid cash on the spot and not have to play the game of claim submission should be willing to talk some business.
A Doctor knowing he will be paid cash on the spot and not have to play the game of claim submission should be willing to talk some business.
ginwoman
Well-Known Member
If the deductible on your policy is $1,200...couldn't you just keep at least $1,200 in your HSA? Wouldn't that be your "Medical Emergency Fund?" Do you have to make regular additions to the HSA? And it earns interest?
Thanks!
somdfunguy
not impressed
Yes you could, and should, My deductible for family was $3200 with my HSA so that is how much I put in there that year.
mamatutu
mama to two
We have it and like it alot. Hub's company contributes once into it at beginning of year, and then, a specified amount comes out of hub's paycheck each month to go into the HSA. After the info I just read on this thread, I guess the HSA is going to change or go away all together. Hopefully, Obama will lose, and Romney will get rid of Obamacare. What a joke it truly is, and just a step to everything else our government will start controlling.
awpitt
Main Streeter
I have one and like it. My family deductable is $2400. My employer deposits money into my HSA each month and I put money into it as well. I have a MasterCard that I use when paying for medical, dental, and pharmacy. Once the deductable is met, the insurance kicks in at 100% for most things and an 80/20 split for some things.
ProfMoneyWise
Member
Yes that is how I would work it.
The need for the emergency fund diminishes as you fund your HSA.
As for future contributions I would continue to participate as this money is still your money and any amount not used (and earnings) is yours do with as you wish once you reach the age of 65.
Each situation is different so please consult your advisor(s) for guidance as it applies to you.
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kwillia
n/a
Are cash payers allowed to negotiate pricing just as insurance companies do? When I get an insurance statement and see the doctor's bill amount is $550 and the accepted negotiated price ends up being say... $220 I often wonder if I walked in off the street uninsured do I get an chance to pay the $220 rather than the $550?
ProfMoneyWise
Member
A Doctor is a business person who sells their knowledge/skill to you.
We purchase insurance to reduce our risk.
You might even beat $220 if you have a stack of $20's in your hand.
If you want to purchase directly from the Doctor you sure can do this. I would not just walk in do this prior to the appointment however I would contact the business and ask for a meeting to discuss your options and pricing.
On a related topic google - "Concierge Medicine"
This may be a wave of the future with many providers.
ginwoman
Well-Known Member
There would be no employee contribution in our case. It would be 100% our contribution. I believe I'll hold tight until after November 6th for this and a lot of other decisions.
My HSA is through HSABank. I got mine when I DID pay for my own healthcare. I did so for 5 years at a very high rate for an individual policy.
Learning about Health Savings Accounts - Education/What is an HSA - HSA Bank
However, when I changed jobs 2 years ago, my current employer had *just* started offering high deductible health care plans along with HSA's as an option.
I was very lucky! They contribute $1,500.00 a year, so I save that much money by not having to put it in myself.
The following year, they went to ALL high deductible health care plans, in order to keep the costs to the employer and employees down. I was one of the few employees not concerned. Nothing has changed for me in 7 years, PLUS I save money being in a group insurance plan with lower premiums rates! (the group plan also has better benefits than my individual plan did.) Not everyone at my company has taken advantage of the HSA option, which is a mystery to me, except for maybe they don't have good health.
Not only do I have the full amount for my deductible, I have more than the catastrophic cap (for my insurance plan) accumulated in my HSA. So, if I have a major medical need, my healthcare will be covered at 80/20% for a certain length of time and then 100% for a certain length of time. Otherwise, that money rolls over every year.
Learning about Health Savings Accounts - Education/What is an HSA - HSA Bank
However, when I changed jobs 2 years ago, my current employer had *just* started offering high deductible health care plans along with HSA's as an option.
I was very lucky! They contribute $1,500.00 a year, so I save that much money by not having to put it in myself.The following year, they went to ALL high deductible health care plans, in order to keep the costs to the employer and employees down. I was one of the few employees not concerned. Nothing has changed for me in 7 years, PLUS I save money being in a group insurance plan with lower premiums rates! (the group plan also has better benefits than my individual plan did.) Not everyone at my company has taken advantage of the HSA option, which is a mystery to me, except for maybe they don't have good health.
Not only do I have the full amount for my deductible, I have more than the catastrophic cap (for my insurance plan) accumulated in my HSA. So, if I have a major medical need, my healthcare will be covered at 80/20% for a certain length of time and then 100% for a certain length of time. Otherwise, that money rolls over every year.
I've been a cash-paying consumer of health care products and services for almost a decade now and I've often been pleasantly surprised by what I am billed for some things. I know I've gotten very good prices on MRIs and other radialogical services as just one example..paid far less than I know those things would usually bill out for.