Would I benefit from a HSA?

Question

Right now I pay over $2605 for medical and dental insurance a year. (My weekly payment are taken out after taxes)

I think this is extremely high. I only go to the doctors maybe once a year and the only med I'm on is birth control. I'm a single women in my middle 20's. On top of that I still have buy my own eyeglass and ect..

Would I benefit from a HSA?

Answer 1

If you are paying $2,600 per year and are in good health, yes you could benefit from an HSA. For example a 25 year old in good health could pay $103 per month for a Qualified High Deductible plan with a deductible of $2,850. If you need medical care you pay the first $2,850 then the Insurance company pays 100%. You max out ofpocket is your deductible.

In a good year you will save $114 per month over what you are paying now. By a good year I mean no doctor visits.

In a bad year, meaning you meet the dedcutible. Your total medical expenses would be the deductible $2,850 + your premium of $103 per month =$4,086 total expenses.

Now compare your current premium, $2,605 + your deductible + your co-insurance max out of pocket= ?

Odds are your current plan will go way over the HSA $4,086 in the worst case sceanario.

You should contact a broker in your area for quotes.

Since you are not paying for your current plan with pre-tax benefits you should be able to cancel your group plan at anytime.

Unlike FSa's wth the HSA accounts you never loose the money you deposited.

Funding the HSA on your own would not be bad.

Answer 2

Hi there,

There are variables involved...  You pay around $2,605 per year right now.  Does your employer cover some of the bill already or is this all out of your pocket?

If you go with a HSA, will you be buying it or is it thru an employer?  

I can speak of my personal case.  I have a family of five and we would pay $3,816 out of pocket and my employer paid around $5,500 out of the company pocket.  I talked with them, the company agreed to pay that $5,500 to me in the form of a raise (around $2.50 an hour or so).  

That extra money, plus what I was already paying out of pocket pays for my current HSA approved insurance plan and the max contribution into the HSA bank account.  The total amount for medical is in the area of around $9,300.  The insurance bill is $3,800 for all year - the remainder is around $5,500 and the max I can contribute is $5,800.

We are healthy, don't smoke or drink.  I expect that the money will just add up until we need it in the future.

Hope that helps.

Jeff

Answer 3

I am also in my 20's and rarely go to the doctor.  At my last job they offered a HSA if you took a high deductible health plan.  If you don't go to the doctor very often, it will definitely benefit you.  With a high deductible, your health insurance will be cheaper and the idea of an HSA is that you will set aside tax free enough money to cover the deductible if anything should happen.  If you don't go to the doctor, that money builds up.  

I would double check that the HSA isn't "use it or lose it" it shouldn't be but most flexible spending accounts (FSA) are.  If you don't use the money in it by the end of the year you lose it.  

The HSA I enrolled in was perfect for me.  My employer contributed some money to my HSA and I never went to the doctor so it just built up.  My wife ended up using it for her co-pays for doctor visits and contacts even though she was on her own insurance.

So in summary, you will benefit as long as it isn't "use it or lose it."  You can build up money tax free for when you do go to the doctor more as you get older and your insurance premiums will likely be lower.

Answer 4

no you wouldnt