HSA for health insurance

**frugal is fun** · 11-29-2010, 11:59 AM

so my employer is offering HSA (Health Savings Account). anyone have one, or have thoughts on them?

I would have a $4,000 deductible, with my company contributing 50% ($2,000) Jan. 1.

Once I hit my deductible I would be 100% covered in network, 70% out of network.

With this plan I would be paying $27 a week through payroll deduction.

I'm seriously considering switching plans.

Currently I pay $48 a week which is increasing to $70 thanks to Obama Care. I would have a $20 co pay for office visits and prescriptions, with 100% coverage in network only plan.

any thoughts?

**Greebo** · 11-29-2010, 12:02 PM

HDHP (High Deductible Health Plans) with HSAs (Health Savings Accounts) are VERY good options if you are either pretty healthy or pretty sick.

Pretty healthy because you can save up money in the HSA which can be invested and can grow for the rest of your life.

Pretty sick because your annual expenses are capped at your deductible amount - unlike with 80/20 insurance.

Only concern - Obamacare is rumored to be killing HSA's in the future. That's rumored- not confirmed as far as I know.

**frugal is fun** · 11-29-2010, 12:58 PM

My son and I are relatively healthy with the occasional sick visit. Mostly well visits and routine stuff. Well visits would be 100% covered under my HSA.

I don't think I would hit the deductible but like you said, the money would roll over to the next year and so on until the time came when I needed to use it. I think I would also put the $21 a week difference of what I"m currently paying ($48 to the $27) into the HSA to help build it.

And if Obamacare did push out the HSA I'm sure most of the plans would change in some way, probably cost, and I would review my options again at that time.

**Greebo** · 11-29-2010, 01:05 PM

Originally Posted by frugal is fun

My son and I are relatively healthy with the occasional sick visit. Mostly well visits and routine stuff. Well visits would be 100% covered under my HSA.

Sounds like the HDHP/HSA is the way to go then.

I don't think I would hit the deductible but like you said, the money would roll over to the next year and so on until the time came when I needed to use it. I think I would also put the $21 a week difference of what I"m currently paying ($48 to the $27) into the HSA to help build it.

I'd encourage you to build that HSA up as quickly as possible in the first year, just in case, then slack off the contributions just to keep up with expenses.

**rachelj** · 11-30-2010, 09:12 AM

We absolutely love ours. It has truly been a life saver for us.

Almost two years ago, our then 3 year old daughter was dxed with a very aggressive form of cancer. This type of plan was amazing for us.

All medicines - even over the counter ones can go back to the HSA. It is nice!

**stinkbug** · 11-30-2010, 12:07 PM

As of 2011, you can't use your HSA for OTC items anymore.....

**frugal is fun** · 11-30-2010, 12:50 PM

in order to use HSA for an OTC drug it has to be prescribed by a doctor. At least thats how our plan is.

**MomToTwoBoys** · 11-30-2010, 01:17 PM

We have an HSA that covers about $200 per year and it's retroactive the year before. In other words, we have anywheres up to $400 to use for things like eyeglasses and such.

It's a good thing to have.

**Greebo** · 11-30-2010, 01:21 PM

Originally Posted by MomToTwoBoys

We have an HSA that covers about $200 per year and it's retroactive the year before. In other words, we have anywheres up to $400 to use for things like eyeglasses and such.

It's a good thing to have.

HSA's in Canada work differently. In the US, HSA's can accrue with no time or $ limit.

**stinkbug** · 11-30-2010, 06:29 PM

Up until recent notification, ours could be used for any OTC item, including vitamins, pain relievers, etc. It will change in 2011.

**Ramseygirl** · 12-01-2010, 12:51 PM

We musts made the jump to a high-deductible plan for 2011. There was a plan calculator offered by our current provider that showed us how much was spent last year on our plan, if things happen the same way this year, it will have been a good thing, if we have a major event, we'll come out -$7k. It was a risk we were comfortable taking this year that we weren't last year.

**fredsneed** · 05-23-2011, 08:55 AM

Keep in mind if you ever leave your job, you can't continue your HSA under COBRA. Although you can use the HSA to pay for COBRA premiums.

About 80% of employer based plans have moved to high deductible or higher co insurance plans.

Also premiums are projected to go up this year 8-12% because of the new regulations, before annual health care inflation. So premiums could go up 10%+ in 2011.

Deductible plans are good from an insurers point of view because you have people taking better care of themselves, engaging in less risky activity. But also people are delaying (or rushing) procedures because of the annual nature of deductibles.

**lisaflex** · 05-23-2011, 10:04 AM

i think it all depends.....on each indiv/family

(i am a licensed broker)

things are a changin....one never knows! kind of scary.

i guess it shold somewhat depend on how secure your job is.....that is something to keep in mind.

70/30 is pretty steep is you do opt to go out of network....i like the freedom of choice when it comes to our family.

do your due diligence and then make an educated choice.