Can someone please explain to me, like I am a 5 year old, what the Health Savings Account does!!?

Question

I'm looking into it for my parents in law. They pay $800 monthly for health insurance. They don't have this kind of money since their income is only about $1,800 per month. Can they get a HSA instead of keeping their current insurance, or do they have to keep the current insurance in order to qualify for the HSA? What's the deal?

Answer 1

5 years old and your worrying about Health Saving Accounts? Heck at five I couldn't even write my own name...

p.s. i was kidding.

Answer 2

hahaha those other people are morons, your not actually 5 years old, hahaha they should learn to read.

It just helps out wit the cost. Tell them to move to canada, it's free up here.

Answer 3

The best way I've found to explain it is a HSA is like financing your out of pocket medical expenses, only it's your own money you're borrowing from.  For example, if you started contributing $10 per month in January, your HSA will be worth $120 by the end of December.  If during April, you have an out of pocket expense for $75, you can turn that expense in & get reimbursed or it can be deducted from your HSA.

An HSA can't take the place of insurance.  It can only help lessen the burden of deductibles or other out of pocket expenses.

Hope that helps a little.

Answer 4

It makes your Mommy & Daddy hit each other and wish you had never been born.