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View Full Version : What do you think of Health Savings Accounts?




clb09
08-04-2009, 08:12 AM
http://www.examiner.com/x-11804-Health-Care-Examiner~y2009m7d27-Health-Savings-Accounts-101-Twelve-reasons-to-have-a-Health-Savings-Account-HSA


Health Savings Accounts are the brightest idea to come out of Washington in the last few years. There is a lot of misunderstanding about health savings accounts or HSAs. Here are twelve of the best reasons to get one.

1. A fully funded health savings account used with a high deductible health insurance plan gives you 100% health insurance coverage sometimes for half the cost of traditional health insurance.

2. All contributions to a health savings account are tax deductible even if you spend the money during the year on medical expenses.

3. Money deposited in your health savings account earns tax free interest.

4. Money you deposit in your health savings account and don’t use for medical expenses rolls over year after year

5. The money you don’t use for medical expenses during the year remains in your pocket not in the pocket of an insurance company

6. You may pay for medical expenses not covered by your health insurance plan using pre-tax dollars from your health savings account

Mani
08-04-2009, 08:15 AM
It sounds great until #4. My company says you USE IT OR LOSE IT at the end of the year.

If you could roll over, awesome. But when I'm threatened of losing money since no one got sick or injured in a given year, it sucks.

Bradley in DC
08-04-2009, 08:16 AM
It sounds great until #4. My company says you USE IT OR LOSE IT at the end of the year.

If you could roll over, awesome. But when I'm threatened of losing money since no one got sick or injured in a given year, it sucks.

I'm not sure you have an HSA then. Mine works as advertised.

clb09
08-04-2009, 08:19 AM
It sounds great until #4. My company says you USE IT OR LOSE IT at the end of the year.

If you could roll over, awesome. But when I'm threatened of losing money since no one got sick or injured in a given year, it sucks.

Sounds like your talking about a FSA (Flexible Spending Account)

From Wikipedia:


Medical expense FSA

The most common type of FSA is used to pay for medical expenses not paid for by insurance; this usually means deductibles, copayments, and coinsurance for the employee's health plan, but may also include expenses not covered by the health plan, such as dental and vision expenses and over-the-counter drugs including a first aid kit. A medical FSA cannot pay for health insurance premiums, cosmetic items, cosmetic surgery, controlled substances (in violation of federal law), or items that improve "general health". All items must be intended to treat or prevent a specific medical condition; this can be as significant as diabetes or pregnancy, or as trivial as skin cuts. Generally, allowable items are the same as those allowable for the medical tax deduction, as outlined in IRS publication 502.

The annual caps for a medical FSA varies by employer. Unlike dependent care FSAs, there is no IRS cap on medical FSAs, but employers generally limit the annual amount each employee may contribute, in order to reduce the risk of pre-funding. Should the employee leave or be terminated and thus no longer pay in to the plan, the employer does not recapture their pre-funding from the employee's payroll deduction.

Flexible Spending Accounts debit card allows for the automatic electronic transfer of pre-tax dollars from an employee account when paying for qualified expenses. Employees are able to receive immediate reimbursement of their medical, dependent care, and commuter expenses simply by using their card at the point of service. The normal paper claims process is eliminated, as are worries of forgotten purchases or lost receipts.

kahless
08-04-2009, 08:20 AM
It sounds great until #4. My company says you USE IT OR LOSE IT at the end of the year.

If you could roll over, awesome. But when I'm threatened of losing money since no one got sick or injured in a given year, it sucks.

Then the one year you do not participate since you lost all that money the prior year is when suddenly visits-bills accumulate.

It would make all the difference if you did not lose it at the end of the year and it is allowed to accumulate.

Mani
08-04-2009, 08:20 AM
Sounds like your talking about a FSA (Flexible Spending Account)

From Wikipedia:

Good call, yes, that's what we have. Medical FSA. I like the sound of the HSA better since it accumulates.

pcosmar
08-04-2009, 08:25 AM
I think I would need income before I consider savings.

That said I have not seen a Doctor (other than meeting Dr. Paul ), in years.

Liberty Rebellion
08-04-2009, 08:53 AM
It sounds great until #4. My company says you USE IT OR LOSE IT at the end of the year.

If you could roll over, awesome. But when I'm threatened of losing money since no one got sick or injured in a given year, it sucks.

Mine is the same.

specsaregood
08-04-2009, 08:57 AM
I think they are a great idea, but my state doesn't allow them.

angelatc
08-04-2009, 09:03 AM
I'm not sure you have an HSA then. Mine works as advertised.

It isn't the company's rule-it's a law. Your money can carry over, but the money they pitch in can't roll over.

Ours had both. Expenses came out of the portion we couldn't carry over first, then if we burned through that we had to dip into our own.

They're awesome.

dizi24
08-04-2009, 09:40 AM
YouTube - John Stossel - Sick in America - Part 5 (of 6) (http://www.youtube.com/watch?v=Xsp_Jh5EIT0)

John Stossel on HSA's. Must watch IMO

TastyWheat
08-04-2009, 10:22 AM
I'm pretty sure you can transfer the money to another HSA without penalty and use it for non-medical reasons with some kind of penalty.

muh_roads
08-04-2009, 10:35 AM
I like my HSA and dislike it at the same time. It makes my stomach ill to see what things actually cost and I stress out over it. I wish everyone was on HSA or had high deductibles. It would force people to shop around for doctors and they in turn would be competing over you.

That would be the best way to lower costs.

dantheman
08-06-2009, 07:24 AM
Thanks for the video. That explained it to me very clearly. I love this idea. I know Ron Paul promoted it throughout his campaign but I just never thought of the advantages of it. Mainly the fact that it makes the consumer responsible again.

clb09
08-06-2009, 08:36 AM
Mainly the fact that it makes the consumer responsible again.

http://www.dillydeal.com/bingo_cartoon.gif

tremendoustie
08-06-2009, 08:38 AM
http://www.examiner.com/x-11804-Health-Care-Examiner~y2009m7d27-Health-Savings-Accounts-101-Twelve-reasons-to-have-a-Health-Savings-Account-HSA

I support people avoiding taxes whenever possible. And yes, people paying for their own healthcare will drive down costs, because it resolves the problem of 3rd payer, with no price based market feedback.