Anyone have a Health Savings Account?

I'm familiar with the basics of it, but I'm looking for personal experience. I need to decide if this would be a better route than COBRA for someone who has few doctor visits?

Also, is it still considered continues coverage if you get on another plan, or is it a lapse, with pre-existing conditions getting a waiting period

If you don't use it all up, you lose that balance of the account at the end of the year. There may be good reasons to have one, but that one things just doesn't sit well with me at all.

that employers give out.

which could wipe you out. Do the COBRA

but I personally know people who use it for expenses that they KNOW they are going to have. Glasses, contacts, medication, a 2nd trip to the dentist...annual expenses that they can pretty well count on.

Anything beyond that and you're quite possibly throwing your money away since it's gone if you don't use it.

Not the same animal.

are VERY different than medical savings account.

You are self-insuring yourself in an account and you buy a policy for catastrophic losses. You can carry the amount over from year to year. For example, you put $1,000 in an account and pay a monthly fee that covers you for losses over $5,000.

not making fun of your post, but of my situation. I couldn't currently buy more than a bag of cough drops, much less a health "savings account".

Good for all that can though. Make some wise choices.

than the insurance company. My usage dictates a conventional plan, but I was wondering if it would be better for someone who avoids doctors at all costs.

I have health insurance, but also have unusually heavy expenses for health care owing to a lengthy and serious illness in my youth.

I have an investment account I use only and specifically for health-related expenses that are not covered by insurance. And I have a seperate one that I use for vet visits for my cat. Since I adore the little fuzzy butthead and would gladly spend any amount of money to see him healthy, it seemed like a good idea.

Yes if so. It allows me to get reimbursed with non taxed money for things like co-pays and some OTC medications.

Different program.

There is something similar to an HSA that can be an employee benefit. I think it's called a Flexible Spending Account.

Here's the one you're interested in.

Like all Bush programs, it's essentially a tax shelter for the rich.

You're supposed to get a high-deductible health insurance plan and then put money aside every month up to a total of $2400 or so (it goes up each year).

You DO get to keep the money from year to year and withdraw it for any reason at all after you retire.

But there are a couple of catches:

1. The insurance policies designed as HSA policies cost the same as or more than conventional insurance policies.

2. Then on top of that, you're supposed to contribute money to the savings account.

3. You can't have an HSA without a high-deductible insurance policy. You can save money for health expenses, but the account won't be tax free. Unfortunately, when you get into my age group, the allowed maximum annual savings in an HSA don't cover the deductible you need to maintain in order to keep coverage affordable.

If you have money for an HSA-eligible insurance policy (may be doable if you're relatively young and healthy) AND you can put aside an extra $200 a month, then it's worth doing.

Otherwise, you're out of luck, just like me. :-(

I'm glad you understand what I'm talking about. We would paying more than that for COBRA for one of us and I'm just wondering if it would be better to keep the money.

About how much do you have to have outright to set it up? I've done some initial searches on the Net, but it's more sales-type stuff than nut-and-bolts application.

First, you need an insurance policy with a certain deductible. Companies like Blue Cross tell you about their HSA option, but I'm not sure that you necessarily need to get a specifically HSA account. I think banks are starting to allow anyone who has a high-deductible policy to open one.

There is a maximum amount you can pay in per year, and it is pro-rated per month, so if you start in February, you can pay only 11/12 of the annual amount. However, you don't HAVE TO pay the maximum, and you can pay it annually, quarterly, monthly, however you want. The last time I looked, the maximum was 2400 for a single person, a bit more than double that for a couple or family.

Since my deductible is more than $2400 :-( I haven't bothered. Anyway, ask around at the insurance companies (ugh) and banks or credit unions that are available in your area.

I'm not claiming that you're wrong, it's just the first time that I remember having heard that. When I opened my account in mid December last year and only put $1000 into it (being Christmas time and all) with the intent of putting another $1850 into the account before April 15 for tax year 2007. Then once I know how much I can contribute for tax year 2008 I intended to put that in as a lump sum (depending on what the market is doing.)

Regards, Mugu

but I do know that there is some wrong info on this thread. I set up an HSA with Blue Cross before the end of 2007. The Blue Cross policy has a deductible of $1750. I then opened an HSA account at my bank. I believe that the maximum that I can contributed for tax year 2007 is $2850 and any money not spent is carried forward into 2008, but not counted against my 2008 contribution. In 2008 I can contribute even more, but my accountant hasn't informed me how much yet. This money is before-tax money that is used to pay for all medical expenses (office visit, medication, etc.) that are not covered by insurance because of the deductible or because of a non-covered item, such as dental in my case.

Before the change over my deductible was $500 (as stated before it's now $1750.) But with the difference in premiums my pay back period is less than 10 months and even less when you consider that I now get to pay with non-taxed money.

When you open the bank account they furnish checks, debit card, and an on-line payment service. So when I go to the pharmacy (even for non-prescription drugs) I use the debit card. When I go to the dentist I use the check book, and when I am billed by the doctor's office I use the on-line payment system.

This system isn't for everybody, but it works for me.

Edited to add: This is just the sort of thing that I would think that a healthy person would want. As stated above, the payback period was less than 10 months. The only down side for me is the bank charges me $3 a month in fees and pays next to nothing in interest. I'll learn to live with it.

Regards, Mugu

We would probably stay with Blue Cross, but just a different form.

First, do you still get all the negotiated fees. For example, the doctor bills an exam at $100 but has the negotiated fee with the company for $80. Would you pay the $80 or is everything at the unnegotiated rates?

Also, you are still considered insured, correct? So if you get different insurance, you would get the certificate of continuous coverage in case of any pre-existing conditions?

Of course, I'll negotiate all this directly, but I want to see if it's worth my time or just spinning my wheels.

Thanks.

All of your visits, etc. are billed to the insurance company first and if not covered then sent to you. So yes the rate that I pay is the one that the insurance company would pay. I got some notice about Certificate of Creditable Coverage about a month after the change over, but I'm not sure what thats about. As far as I can tell it's like changing your deductible. You're still with the same company, just lower premiums and a higher deductible.

You should check with your agent to be sure. When I went in to make the change it only took a few minutes and it was a done deal. My personal opinion, it's worth your time.

Regards, Mugu