How does an HSA or FSA really work for under insured people?

Question

My husband and I are self employed.We carry health insurance,but because of all the loop holes,we end up paying alot of out of pocket expenses.I,m interested in knowing if an HSA or FSA or something similar would save us money.

Answer 1

Sounds like you have one of those plans from one of several companies that sell "group" insurance to the self employed. Those plans are not major medical.

To open an HSA you need a qualified health plan. Most major companies have HSA qualified plans available. With an HSA you won't be under insured. With most HSA plans once you reach the deductibe everything is 100% covered. In most cases the HSA will save you money. Here is a government website with more information: http://www.opm.gov/hsa/faq.asp#4

With the FSA you loose the money in the account if you don't use it, not so with the HSA. For this reason the HSA is better for most people.

If you decide on an HSA plan you should visit a local agent that works with all the major companies in your area. The agent can find the best plan for your situation and budget and can explain how the HSA works. There is no extra charge using an agent, you'll save a lot of time, and you'll get a plan that works best for you.

Answer 2

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