Looking for People Who Actually Use Health Savings Accounts

My employer has an HSA option (through either Blue Cross/Blue Shield or another carrier). We do not use that option... I wanted to, but because little information is provided, we went with a more traditional POS plan. The other issue was our HSA plan did NOT cover some treatments we need this calander year.

My employer contributes $1500 for me and $1500 for my wife into the plan, we are responsible for next $3000, then the deductables kick in. If plan covered what it needed to, we would have used it.

I stumbled across an article with some good links.

TC, I'll reply as an actual HSA user. I started with an MSA when that was a trial program, and still have that account as well as an HSA. The basic idea of both is the same -- high deductible health insurance paired with a savings account that holds before-tax money.

In CA it was easy to choose the insurer, there were two MSA-compatible health policies, one from Blue Cross & the other from Blue Shield and the latter was marginally better at the time. Now there are a couple others out there so I'll revisit that at some point.

The premiums have risen tremendously, but what else is new? I think it started at $59 and is now $128/mo. Total claims over about 7 years: $0. I've spent maybe $1k from the HSA on random stuff including eyeglasses (prescrip).

I think it's a good alternative for someone who never goes to the doctor, and who has the cash to set aside the maximum to the HSA (the savings account itself). It's a good forced rainy-day fund if nothing else. Make that painy-day fund. And while you do need to pay the first (in my case) $2200 out of pocket there's an emerging group of "fee for service" health care providers that cater to HSA holders. You call up and get an appointment in 30 minutes, pay cash (out of your HSA) and that's the end of it. Rates are a bit higher than it would be for a next-week appointment at a traditional provider but to me it's worth it.

Also, a benefit that almost never gets discussed is that despite needing to meet the annual deductible before insurance kicks in, you do get the benefit of your insurer's pricing, without having to try to negotiate with the health care provider, when using your typical facilities. When you see the difference between rack rates and negotiated rates it's astonishing - I've seen as much as a 70% discount. That plus the tax benefit of the HSA contribution could be enough to pay for the insurance premiums. I've actually made that argument to some of my uninsured friends who have gotten injured & paid out of pocket. If you get injured the HSA will have paid for itself, assuming you contributed to the account -- tax benefit for premiums + contributions, discount for the services.

-Tad

A few additional questions/comments-

My Employer's HPHP has a HSP (Health Savings Plan) attached to it The plans are through Blue Cross Blue Shield and another through Aetna. My employers puts $2500 into the HSP for me each year, this amount carries over from year to year (so if I don't spend it, the $2500 carries over and I have $5000 the next year.

I looked up if I could use an HSA AND the HSP, no info on HSP except from employer, so not sure. I talked about HSA's with my companies director of HR Thursday, she could talk about HSP but not the HSA. My wife works in HR and she knows little about HSA as well. I will see her colleages at dinner tommorrow (who are all HR professionals)- if you have some creative questions to ask, post them here, please.

My wife and I are about 1 year from using this HDHP from my employer. I found the info I originally posted above about 1 month after our open enrollment ended.

I will see

I suspect this is a different type of account than a true HSA, one that is forfeited if you leave, but these questions should clear that up:

1. is this Health Savings Plan just another name for an HSA?

(I'm guessing "no"...most of the rest are contingent on a "yes" reply to #1)

1. is this HSP money portable - can I move it to an HSA somewhere else, like a bank that I choose? what happens to the $ if I change jobs? if I change health plans? can I still use the HSP dollars for other medical costs?
2. if the 00 is less than the maximum allowable HSA contribution under tax laws, can I add a contribution of my own, and take a deduction on my tax return? if so can I put my contribution in an HSA at another bank, that I choose?
3. if the HSP gets big enough can I choose to invest the money & if so what are the investment alternatives? do I earn any interest on the money?
4. how do I take $ out of the account? do you verify what I use the $ for?
5. since you ordered the expensive appetizers and dug deep on the wine list are you picking up the check?

-Tad

Thanks for the replies. I found a lot of useful information on hsainsider.com. My research has led me to the following conclusions:

1. Several companies offer high-deductible insurance policies at comparable prices. The policies don't seem to be overpriced compared to normal insurance policies. I'm going to choose Aetna, just because their network includes the doctors I want. My premium will be about 0/month for a ,000 deductible.

1. Choosing an HSA administrator is harder. This is an important decision because the HSA administrator sets the rate of interest I will earn on the account. A below-market interest rate can easily negate the tax benefits of an HSA. Most administrators offer what I consider to be a below-market rate in the range of 3 to 5 percent. Some, however, give account-holders the option to invest in mutual funds. Of these, I'm leaning toward a company called Health Savings Administrators. Their fees are fairly high -- plus 0.4% of your balance every year -- but they offer a wide range of Vanguard funds, and I like that.

If anyone has any personal experience with these two companies, Aetna and Health Savings Administrators, I would appreciate your comments.

-TC

Please post links to companies listed above.

Thank you.

jIM

Probably not

NO- this is why my employer uses the HSP- cheaper.

I cannot contribute to the HSA, but I could use a FSA to supplement this. All my companies health plans put employee contributions to an FSA (Flexible spending account).

The money is taken out when either the insurance company makes a claim or I submit a claim to the HSP.