Are HSA's beneficial to everyone or do you think they mostly benefit high income individuals?
2006-10-08 14:42:40 · 6 answers · asked by Willie 2 in Health ➔ General Health Care ➔ Other - General Health Care
The advantage is that the funds come out before taxes. You don't have to pay tax and then pay monthly insurance fees, deductibles, etc.
Plus, you can accrue things - band-aids, lotions, etc. - and pay yourself as needed.
You should definitely talk with an insurance agent about it... they can be good, but you have to put the money in the account. Otherwise, if you get sick, you're up the creek.
2006-10-08 14:52:23 · answer #1 · answered by Jim I 5 · 0⤊ 1⤋
I have had several HSAs and I loved them. However, you do have to plan ahead. Don't have more money put into t he plan than you can spend, or you will lose whatever is not reimbursed at t he end of the plan year. For example, if you know you are going to have a certain surgery or need glasses, etc. and you will need $500 put away for this cost. If the surgery is less than you have put away, be sure to find other health costs that it will cover or you will lose the balance. It does not carry over to the next year. Each year you will choose a total balance to be put into your HSA account, and you must spend it all on health related costs. There should be a list of items that are covered. There is also a time limit after the year is up for you to claim your money back.
It is a great plan, especially for those that have a high deductible insurance and usually meet that deductible, because you can save that amount and the money is usually paid very quickly to you.
I don't have one at my current job and I really wish I did.
2006-10-08 14:59:31 · answer #2 · answered by dbarnes3 4 · 0⤊ 0⤋
One thing to look at when comparing HSA's to a "traditional" health plan is the out of pocket limit. Most traditional health plans you pay the deductible and then the coinsurance until you hit what the insurance industry calls the maximum out of pocket. With the HSA plans most of them sold are sold with 100% coinsurance, which means once you reach your deductible you plan pays 100%. Another plus for the HSA versus a traditional plan are the copays. On a traditional plan even if you do reach the Max. Out Of Pocket you still are responsible for the copays on the HSA there are no copays which benefits the sick, you are continuously being hit with copays everytime you go to the doctor or the pharmacy. So when comparing plans look at the total out of pocket look at how much you have to pay before the insurance starts paying 100% in most cases the HSA will pay more faster.
HSA money can also be used for other things than just medical. For a complete list refer to the IRS website for Section 213(d) reimbursable expenses.
2006-10-09 08:50:55 · answer #3 · answered by raceman052000 1 · 0⤊ 0⤋
It depends...I don't have a high income but I have one and I have saved a ton....but you have to factor in a lot of things....I first learned about it through the book "Healthcare for Less" by Michelle Katz...you might not only find her simple definitions useful, but also her charts that will help you analyze the plans and what is good for you. It is worth the $15 at Barnes and Noble....I have saved a lot by following her advice and looking at all the options as she defines them.
2006-10-09 07:35:56 · answer #4 · answered by Michelle 3 · 0⤊ 0⤋
I used one in the past and found it very helpful in paying off medical bills
2006-10-08 14:44:41 · answer #5 · answered by kimberleibenton 4 · 0⤊ 0⤋
I dont personally have one myself, but a few people I work with do and they claim it is a big help.
2006-10-08 14:50:19 · answer #6 · answered by cfoxwell101 2 · 0⤊ 0⤋