Health Savings Account

quote:

---

I'm 25, single, and healthy.

---

Unless you plan on contributing a lot, then I don't think they are worth it.

If you're single and healthy I don't really see the need to dedicate money toward health expenses. I had one at one point where I put a little in and the company put a little in and the "monthly account maintenance fee" was more than if I had just paid taxes on it.

There was a 10k balance limit to avoid the fees and as a healthy adult I wasn't going to set 10k aside for health expenses.

I will be starting a job in state government. As I understand it, they would contribute $200 and match up to $575 each year.

Would I be able to still contribute to the HSA even if I later move to a different health insurance option?

Sean Hannity says HSA's will be the GOP replacement when the Republicans repeal ACA in 2017.

I just don't see HSA's as the answer.

quote:

---

It is a great opportunity to save and invest.

---

Exactly this - for the future when you are 70 and facing a steady diet of medical bills.

Definitely set aside some money to insure against a catastrophe when you're young and don't expect it though. That's how the system is set up anyway so it isn't difficult.

I have one through my employer and the premium is about 120 dollars less a month, compared to traditional plan, as well they contribute 2,000 dollars a year into my account.

The benefit is also on the tax savings side, $100 spent on out of pocket healthcare cost is $100. On traditional pans your 100 dollars was taxed before hand

For years, being self employed meant I had crappy health insurance - with deductibles up to $6,500. For years we'd always fall just short of our deductible, so we were spending $5-6K out of pocket on medical expenses. An HSA was great for me. We set ours up through State Farm. Most years we'd just pay the medical bills out of my normal checking account - then when we'd have a large health care expense or a chunk of cash sitting around, we'd put it in the HSA and just write a check back to ourselves to reimburse the medical expenses.

Like others have said, just think about it as forced/disciplined savings.
I'm single and 26 and I contribute $50/month.
It all adds up...

Cajun my son had an appt with an ortho and I was 95% sure he was going to need surgery (same symptoms of what I had that ended in surgery). Before I started freaking out about us not meeting our ded yet, I checked our account balance and let's just say was most thankful that we have this account. Now I'm only concerned for him and his recovery and not paying for procedure, hospital, etc.