Health Savings Accounts

patch29

I have my own health insurance policy at the moment. The premiums continue to rise well above the rate of inflation, 12.5% this year. So I am looking at some options to save some money and on my taxes.

I am looking at opening a health savings account and getting a high deductible HSA insurance plan to go with it. I am looking for anyone who has experience with these who might have any tips and advise for finding the right plan and finding the right bank to do business with. I am having a more difficult time finding good information on banks. I have found some, but would like to find one with no fees and the option to invest some of that money in a mutual fund in the future. Thank you for any advice.

docwalker

I am not telling you not to do it. But, you asked for advice so here goes.

The insurance rates around here have been going up fast as they are all over the country. So my office decided to set up a high deductible/HSA type plan to give people the option to save a little money. In theory it can.

I have been fairly healthy most of my life. I decided to gamble and take the plan. Most of the first year goes by with no problems and then it started. Pain and pressure on the left side of my abdomen. I go to the doctor and the fun starts. Lab tests, xrays, cat scans, endoscope, anesthesia... All of which was coming out of my pocket, due to the high deductible. The insurance company does some funny math that discounts the doctors rates. Then the doctor bills you for the discounted rate. I was never comfortable with the amounts. I really think I paid out more than my deductable. So far I have not had time or the energy to prove it.

Finally I hit the magic number and the insurance is paying. I have a colonoscopy tomorrow to see if they can find the problem. We have 2 months left in the year and then the deductible resets. Hopefully we find out what the problem is so I can get it corrected before year end.

I have money in the HSA account as I put in the max $100 that is allowed. So for the first year I have a little over $1,200 in the account. I have paid out well over $3,000 due to the deductable. I am planning to leave the money in the HSA for future emergencies.

Has this effected me? Yep, I have been holding off on the Nikon to Canon gear change due to the uncertainty of the test results. Is the HSA a good idea? Maybe. I gambled and lost. If your health is stable you might do ok. Is it cheaper than regular insurance? In some cases yes.

You asked for bank names. We are using American Charter. I have no opinion on them as all they are doing is holding my money at this time. I do not like their billing statement but it is the same statement that a former bank I used sent out so it may be an industry standard. I like my credit union statement better. It is easier to read.

Good luck and stay healthy.

patch29

Thanks for the info. I have also read some discouraging info from some other sources. I may need to look into some other options. HSA sounds good on the surface, but I guess it may not be a good deal.