Health Savings Accounts

[MattNC]

My friend's company just put her on one. I read the policy tonight. Ugh.

She's on a tight budget, now she has to put X amount of her income into the HSA, so she'll have to cut down on other expenses. I just hope she doesn't get a major illness and face the high, high deductible.

For some people (young, wealthy and healthy) they aren't a bad option I suppose, but I don't see how any lower income worker could ever afford one.

[hedgehog]

1. The way ours works is any out of pocket expenses get reimbursed from the HSA

That includes co-pays, glasses, dental bills. Some OTC meds are also covered. There shouldn't be any deductible for a HSA. There should also be an option allowing you to determine how much goes into the HSA up to a certain limit. In theory, you're setting aside a certain amount of money tax free for annual medical expenses. The racket here is that money goes from each pay check to an account somewhere and accumulates interest for someone else. If you spend it fast enough, there is no profit for the HSA company. I think if any money is left in the account at the end of the year, you lose it. That's why there's always a big push to buy eye glasses in November and December.

[dflprincess]

3. I think you're confusing a HSA with a FSA

FSAs are the ones that are "use it or lose it" by the end of the year.

HSAs may be carried over from year to year forever. You also own them and keep any interest earned. Even if you change jobs, you keep the account and may access it to pay medical bills.

If you have an HSA you can only have a limited FSA that may be used only for dental and vision expenses.

[dflprincess]

2. My company is going to one as of January 1

all part of their "consumer driven health plan".

My maximum annual out of pocket will now be $3,700. $1,200 of that is the deductible - even prescripton meds won't becovered until the deductible is met (however preventative care is covered). The maxium amount the Feds let a single person put in their HSA annually is $3,050 - so even if I could afford to, I couldn't put enough in savings to cover the all my potential out of pocket. At least the dollars that go into the account are pre-tax.

When we were being given the pep talk for this crap, one of it's "selling points" is that once you have $2,000 in your HSA you can roll it into a mutal fund! Good luck with investing your health care dollars in the stock market. If you ever get really sick, I hope it's during a bull market.

There is growing evidence that these plans eventually cost everyone more money. People who have them tend to avoid routine maintenance and may cut back on meds. After 18 months to two years there tends to be more ER use accompanied by more admits and longer hospital stays (especially for chronic conditions). But, in the shore term, employers save a few bucs and insurance companies make bigger profits collecting more premiums and paying fewer claims.

With the high out pockets allowed in the House's "reform" bill - it really isn't better than HSA scams. - People will be paying for coverage, but not getting care. We'll go from millions of uninsured to a nation where the majority is underinsured.

[Skink]

4. Yeah but how bout smelly teeth,