Post # 1
Hubs and I are considering switching over to a HSA next year. We’ve had a PPO for years but the tax advantages of an HSA are hard to deny, plus my employer puts extra money into it. I’m just scared of the higher deductibles and other unforeseen costs. We are a healthy family but you never know what could happen in the future.
If you have an HSA, could you please comment on whether you love or hate it and why?
Post # 3
I have one. I love it because the premiums are so much lower so not as much comes out of my paycheck. Plus, my employer also contributes – they give $1k per year. I barely used any money last year so it all carries over which is nice. My husband and I are healthy so we haven’t needed to go to the Dr. for a sick visit. The only time we used insurance was for my annual OB/GYN visit (which is free now due to Health Care Reform) and for our eye exams/contact lenses, which we paid for using our HSA debit card.
If you don’t need to go to the doctor much, it’s totally worth it! If anything major or catastrophic happens, your insurance will have an out-of-pocket max so you’ll know the most you’d ever have to fork out.
I hope that helps!
Post # 4
- Wedding: November 2013 - St. Augustine Beach, FL
@porcell14: So long as you’re healthy, they are awesome. However, I was diagnosed and treated for cervical cancer this year and I would have easily paid a large deductible (and a good portion of the out of pocket max) with all of the tests and outpatient surgery I had (and still need apparently).
It’s a good gamble to take when you’re healthy but you have to keep in mind that one major event in the first year or two on an HSA could have a major impact and easily cost you your out of pocket maximum without sufficient savings being in the account yet. I loved having an HSA when I was in my mid-20s and rarely needed to see the doctor except for a pap smear and to get birth control. I only switched to a PPO when my most recent employer made it the same price as the HSA and my paps kept coming back with bad results; I wanted the lower deductible and lower out of pocket max of the PPO plan.
I would that if you’re both in your mid to late 20s without any major or chronic health problems, an HSA is a great idea, especially if your employer makes contributions. Just make sure that you could afford to pay the family out of pocket max within a year (or two) should something happen before you have that saved in the account.
Post # 5
We take the HSA option. If you are healthy and you have an emergency fund of cash set aside to cover the deductable, it’s a good choice. It’s not a great option if you are tight on cash.
The tax benefits of an HSA are so awesome. Check out this artivle by the Mad FIentist: http://www.madfientist.com/ultimate-retirement-account/
Post # 6
Thanks ladies for all of your input. I am still not entirely swayed by the HSA plan my employer is offering us, despite all of the tax benefits.
My main gripes are:
1) the premium is the same as the traditional plan
2) the out of pocket costs appear to be worse with the HSA
3) the expenses on the investment options for the HSA are super high
The benefits with my specific HSA plan (besides taxes) are:
1) My employer is contributing $1200 into the account
So considering everything, I think we’re going to stick with the traditional plan. Thanks again!