Should I enroll in a Health Savings Account?
jaypez77 asked:
Right now at work I’m enrolled in an HMO Plan as well as a dental plan. I am a 30 year old single male with no health problems at the moment. I only go to the doctor for a yearly physical, and I go to the dentist twice a year for a cleaning (I’m not sure if the dentist part is relevant). I’m paying almost $1,000 in medical and dental premiums combined, plus co-payments of $20 when I go for a physical.
Right now at work I’m enrolled in an HMO Plan as well as a dental plan. I am a 30 year old single male with no health problems at the moment. I only go to the doctor for a yearly physical, and I go to the dentist twice a year for a cleaning (I’m not sure if the dentist part is relevant). I’m paying almost $1,000 in medical and dental premiums combined, plus co-payments of $20 when I go for a physical.
Would the HSA offered by my employer make sense for someone like me? I figured that even if the total yearly cost ends up being the same, at least that money will be mine and not lost to the insurance companies, plus I will get contributions from my employer. Am I thinking about this in the right way, or should I be considering other factors as well?
Adolfo Finders
Look at your total monthly cost and look at what you’d have (or have spent) if you go to the doctor under different scenarios. That is look at it if you don’t have any medical bills, moderate bills and extreme bills and determine which plan comes out ahead.
Many times the HSA will, but you have to do the math.
Do the math but almost always if you plan on sticking with the HSA long term (more than 3 years) and you max out your annual contributions to the account then you will be better off with the HSA.
The HSA also becomes more and more valuable as a tax benefit with the more money that you make as well.
Here is some more information on Health Savings Accounts: