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HSAs (Health Savings Account)- Anyone Got One?

HSAs (Health Savings Account)- Anyone Got One?

Old Nov 11th 2007, 4:56 pm
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Question HSAs (Health Savings Account)- Anyone Got One?

I'm trying to get my head round HSAs and what the benefits are of having one. Does anyone have one? What do you consider to be the benefits?

I know they're tied to high deductible health plans (HDHP) and I was balking at paying high deductibles.

My household just re-enrolled for the 2008 health benefits and spent some time considering HSAs before deciding on the PPO again.

Feedback on HSAs appreciated. Perhaps there's some element of this benefit that I've overlooked.
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Old Nov 11th 2007, 5:54 pm
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

Originally Posted by NC Penguin
I'm trying to get my head round HSAs and what the benefits are of having one. Does anyone have one? What do you consider to be the benefits?

I know they're tied to high deductible health plans (HDHP) and I was balking at paying high deductibles.

My household just re-enrolled for the 2008 health benefits and spent some time considering HSAs before deciding on the PPO again.

Feedback on HSAs appreciated. Perhaps there's some element of this benefit that I've overlooked.
Are you talking about the plan where you put aside pre-tax earnings to offset health care costs? And if you don't have any health care costs, you lose it all? If so, yes, I participated in it at ECU (it was called NCFlex - a "flexible spending account").

As someone who always had health expenses but never enough to claim tax back, I put away between 500 and (I think) 1,200 in various years. If you know you'll have health expenses, it's a great idea. It includes any health expenses, including dental and vision, so if you are smart, you wait until close to the end of the year and if you haven't had any "real" health expenses by then, you get that new pair of glasses you've been wanting, or get the expensive dental care you've been putting off.

So bottom line is if you use it, great, but if you have no health expenses, you are literally throwing money away.
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Old Nov 11th 2007, 6:10 pm
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

Yes, we put aside ~$500 each year in a Flexible Spending Account, so that our average yearly health care copays come out of that (pre-tax) rather than having to pay them out of income that's already been taxed.
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Old Nov 11th 2007, 7:38 pm
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

Originally Posted by dunroving
Are you talking about the plan where you put aside pre-tax earnings to offset health care costs? And if you don't have any health care costs, you lose it all? If so, yes, I participated in it at ECU (it was called NCFlex - a "flexible spending account").

As someone who always had health expenses but never enough to claim tax back, I put away between 500 and (I think) 1,200 in various years. If you know you'll have health expenses, it's a great idea. It includes any health expenses, including dental and vision, so if you are smart, you wait until close to the end of the year and if you haven't had any "real" health expenses by then, you get that new pair of glasses you've been wanting, or get the expensive dental care you've been putting off.

So bottom line is if you use it, great, but if you have no health expenses, you are literally throwing money away.
No, this should be a savings account that you earn interest on and it doesn't disappear at the end of the year. We too are going to have to enroll in an HSA because of high deductibles. Previously my husband's company only had the savings account that vanished at the end of the year (who would be stupid enough to enroll in that?) but this year with the huge outcry because of the high deductibles they've tried pacifying everyone with the HSA........
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Old Nov 11th 2007, 8:38 pm
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

Originally Posted by NC Penguin
I'm trying to get my head round HSAs and what the benefits are of having one. Does anyone have one? What do you consider to be the benefits?

I know they're tied to high deductible health plans (HDHP) and I was balking at paying high deductibles.

My household just re-enrolled for the 2008 health benefits and spent some time considering HSAs before deciding on the PPO again.

Feedback on HSAs appreciated. Perhaps there's some element of this benefit that I've overlooked.
Originally Posted by dunroving
Are you talking about the plan where you put aside pre-tax earnings to offset health care costs? And if you don't have any health care costs, you lose it all? If so, yes, I participated in it at ECU (it was called NCFlex - a "flexible spending account").

As someone who always had health expenses but never enough to claim tax back, I put away between 500 and (I think) 1,200 in various years. If you know you'll have health expenses, it's a great idea. It includes any health expenses, including dental and vision, so if you are smart, you wait until close to the end of the year and if you haven't had any "real" health expenses by then, you get that new pair of glasses you've been wanting, or get the expensive dental care you've been putting off.

So bottom line is if you use it, great, but if you have no health expenses, you are literally throwing money away.
No. A Flexible Savings Account and and HSA are slightly different animals. Bush signed the Act? to establish HSAs in 2003.
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Old Nov 11th 2007, 11:10 pm
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

Originally Posted by NC Penguin
No. A Flexible Savings Account and and HSA are slightly different animals. Bush signed the Act? to establish HSAs in 2003.
I'm trying to figure out the whole US health care system - and its a mindfield! :s

My company got rid of PPO this year so our only option is CDHP. Was looking at the cost of deductables, then the cost of Co-Payments and I've decided that the FSA (Flexible Spending Account) is defiantly the way forward. Think I'll put 1000 USD in it this year. I think there is a high chance that we might get to use it next year

My company also puts some cash into a HRA (Healthcare reimbursement account) for employees and anything that is not used is rolled over, although - again - I don't think there will be anything left by the end of next year to roll over
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Old Nov 12th 2007, 12:50 am
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

Originally Posted by AmerLisa
No, this should be a savings account that you earn interest on and it doesn't disappear at the end of the year. We too are going to have to enroll in an HSA because of high deductibles. Previously my husband's company only had the savings account that vanished at the end of the year (who would be stupid enough to enroll in that?) but this year with the huge outcry because of the high deductibles they've tried pacifying everyone with the HSA........
Yes thats right.

You can think of a HSA as a tax sheltering investment account (but which can only be used for health related expenses without penalty). There is a max you can contribute each year - 2008 is $2900 for individuals, $5800 for families.

Here are some benefits:

http://members.aol.com/themsaguy/BenefitsOfHSAs.html

What you do is use the money for your medical expenses for the year. If you don't have many expenses, what's left is carried over to the next year.
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Old Nov 12th 2007, 2:28 am
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Default Re: HSAs (Health Savings Account)- Anyone Got One?

With high deductible plans you can also consider a medical bridge policy - they are designed to pay you a lump sum for things such as hospital confinement, seeing your doctor and health screening tests.

They are very affordable and pay directly to you. <<self advertising removed>>

HSA and the likes are great if you know what your average yearly medical expenses are.

Last edited by NC Penguin; Nov 12th 2007 at 12:30 pm. Reason: Self promotion inc. website removed
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