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Started By
Message
Health insurance vs. HSA...or both?
Posted on 8/14/12 at 2:10 pm
Posted on 8/14/12 at 2:10 pm
So, Iam coming off my training period with my new employer and time to elect by benefits. I have no idea what to choose...please help!
Medical premium is $50/month with $2500 deductible
Dental premium is $23.05/month
But I also have an option of opening a Health Savings Account.
Would I be better off just putting my $73/month in a HSA?
Medical premium is $50/month with $2500 deductible
Dental premium is $23.05/month
But I also have an option of opening a Health Savings Account.
Would I be better off just putting my $73/month in a HSA?
5
Posted on 8/14/12 at 2:24 pm to Blackbeard
I have both...my employer pays my premium and they match my HSA contribution every month. I put in $125 per month which = $250 per month in my HSA.
Posted on 8/14/12 at 2:27 pm to Blackbeard
I have an HSA and have so far been quite pleased. Consider the following though:
1) You still need some insurance - it's just a very high deductible. And when I mean high I mean $5K or so, obviously depends on your specific situation. The idea behind the HSA is that you can put money tax-free towards that. This can be great if you're young, but it means when you're old you will be paying that high deductible every year. So save up now.
2) OTOH, if you need to pay for something you can do it tax-free. Unlike flex dollars you don't "use it or lose it", which is great. If you can afford to pay your medical bills out of your checking account this becomes in effect an extra IRA once you hit 59 1/2.
3) Finally, if you get a company match this is free money.
Works for me, but as always be sure to read the fine print. One thing you will get used to is not paying a bill without questioning it first. I had a doc order a couple of blood tests and he just ordered standard panels. I dug into the details and it turned out there was a lot of overlap, went back to him and he agreed, reducing my bill by almost $500. He said he just hadn't thought of it, I was the first person who'd noticed.
1) You still need some insurance - it's just a very high deductible. And when I mean high I mean $5K or so, obviously depends on your specific situation. The idea behind the HSA is that you can put money tax-free towards that. This can be great if you're young, but it means when you're old you will be paying that high deductible every year. So save up now.
2) OTOH, if you need to pay for something you can do it tax-free. Unlike flex dollars you don't "use it or lose it", which is great. If you can afford to pay your medical bills out of your checking account this becomes in effect an extra IRA once you hit 59 1/2.
3) Finally, if you get a company match this is free money.
Works for me, but as always be sure to read the fine print. One thing you will get used to is not paying a bill without questioning it first. I had a doc order a couple of blood tests and he just ordered standard panels. I dug into the details and it turned out there was a lot of overlap, went back to him and he agreed, reducing my bill by almost $500. He said he just hadn't thought of it, I was the first person who'd noticed.
Posted on 8/14/12 at 2:30 pm to Blackbeard
Go with the medical insurance for sure, dental is usually a wash at best, check into the HSA and see if the money you do not use rolls over year to year, if it does fund it for the deductible then stop and only put back in when you take out, if the HSA does not roll over each year then only put money in if you plan on having expenses this year.
quote:NO, if you have a catastrophic event you will be screwed
Would I be better off just putting my $73/month in a HSA?
Posted on 8/14/12 at 2:41 pm to Blackbeard
The $50/month for medical is non-negotiable. You must have that. The dental yearly premium is probably about equal to two cleanings and one set of xrays, but you'd come out ahead if you ever need any work done.
Posted on 8/14/12 at 2:47 pm to foshizzle
Awesome info, thanks alot!!
Posted on 8/14/12 at 2:55 pm to Tigerpaw123
quote:HSA rolls over, HRA does not.
Go with the medical insurance for sure, dental is usually a wash at best, check into the HSA and see if the money you do not use rolls over year to year, if it does fund it for the deductible then stop and only put back in when you take out, if the HSA does not roll over each year then only put money in if you plan on having expenses this year.
Posted on 8/14/12 at 3:04 pm to Blackbeard
Both
Posted on 8/14/12 at 3:12 pm to Tigerpaw123
all HSAs will roll over, it's your money...
you don't have the option to only do an HSA, you can't contribute to one without an active HDHP.
I recommend not using the debit card that comes with it. Pay for everything out of pocket and preferablly only AFTER it has been processed through your health insurance provider..This way you are not overpaying when discounts, etc are calculated..then, as often as needed, simply pay yourself back out of the HSA ...just make sure you save all receipts and keep a nice spreadsheet.... Remember, you don't have to pay yourself back, you can just let it build and basically use the HSA like as a retirement vehicle just like a ROTH IRA .... if you get anough cash in it, you can roll it over to something like hsabank.com and invest agressively ...
did I leave anything out ?
you don't have the option to only do an HSA, you can't contribute to one without an active HDHP.
I recommend not using the debit card that comes with it. Pay for everything out of pocket and preferablly only AFTER it has been processed through your health insurance provider..This way you are not overpaying when discounts, etc are calculated..then, as often as needed, simply pay yourself back out of the HSA ...just make sure you save all receipts and keep a nice spreadsheet.... Remember, you don't have to pay yourself back, you can just let it build and basically use the HSA like as a retirement vehicle just like a ROTH IRA .... if you get anough cash in it, you can roll it over to something like hsabank.com and invest agressively ...
did I leave anything out ?
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