I would like more information on Health Savings Accounts (HSA’s)?
I am writing to get experiences from people who are using HSA’s. From what I gather so far:
1) You have a monthly premium with a deductible (usually large) that you must pay out of pocket but it seems like once this deductible is met then *all* expenses are picked up by your provider. Is this true?
2) Does the deductible “reset” every year, meaning if there is a condition I am being treated for do I have to start paying again next year?
3) How does the program compare to HMO’s & PPO’s in your opinion?
4) Am I limited to choosing in-network providers when I select an HSA – similar to HMO – or can I go with anyone until the deductible is met and afterwards?
5) Are there other benefits to using these? Faster service perhaps? Choice of doctors perhaps?
6) Any disadvantages compared to HMO/PPO’s?
7) If you are using HSA benefits (meaning you’re being treated, not just paying $) and recommend your plan, please tell me.
Thanks.
Note: web links generally do *not* answer these questions as they are geared towards *individual* experience with HSA’s and the health plans associated with them.
Marie
This should answer all the questions.
HSA are usually pair up with a HDHP ( high deductible health plan). Money is directly deducted from your pay check before taxes, so you have less money when taxes are calculated so you pay less fed income, ss, medicare, etc. So said you have two plans, one (Plan A with $500ppo/$1000non-ppo with … etc for $200 per month) and (Plan B $2500ppo/$5000non-ppo …etc for $50)
So Plan A cost $2400/year and plan B cost $600/year. That means you can get plan B and put $1800 in a HSA for the same price as plan A or less or more depending on what you want to put in. And the benefit is you can use the money in the HSA for anything approved cost(almost anything health related, beside vanity items) ( help paid the deductible of the plan B.)
BUT!!!, the biggest draw back is any money in the HSA at the end of the contract year is forfeited to the plan. so the is very important to accurately predict your expenses for the year.
HSA is the best if you really do spend a lot on healthcare in a year. As far as PPO/HMO goes, PPO network is bigger and you can go to a non-ppo place and insurance will still cover you, just at the higher deductible