HSA Statistics

[somarco]

Even if the HSA account was not available, wouldn't the health plan still be better for most people?

True.

The HDHP stands alone as a superior plan to any copay arrangement.

The HSA allows the client to fund OOP expenses on a tax favored basis. At the very least, they should fund the deductible and keep it fully funded.

The added bonus of accruing money for post 65 medical expenses is a reason to fund to the max every year, assuming they have funded their retirement first.

 

[susieQ]

GreenSky

What happens if they have a large claim and you've influenced them not to open the account? They can't go back and get the tax savings. Could be $1,000 or more.

Most people spend more than $25 a month at Starbucks, why not recommend they open it up with a small amount so it's at least available if necessary?

I work with a couple of CFPs that love the idea of the HSAs because they're helping their clients that do have the cash flow with another account that grows tax free, tax deferred, etc. Not a lot of people in that class but a few. HSAbank.com does allow investing in mutual funds so not all funds are getting a pittance in returns.

 

[somarco]

If they at least set up the account, and fund it with $100 or so, they have the ability to add funds as needed.

Even after the claim is incurred.

One of my clients bought a HDHP last year and failed to set up and fund the HSA. In going over their renewal they were complaining about all the out of pocket for things like office visits, X-ray and dental/vision.

I asked if they paid these out of their HSA.

No, they never funded it.

Even if they had put in the minimum, they could have funded after the claim was incurred and taken advantage of the tax break.

Since they didn't, they paid an extra $1000+ in taxes.

So far this year they have not funded their HSA.

Some folks are just too lazy.

 

[TXINSURANCE]

why tie up your money in a low return account that can not be accessed unless a medical need may or may not arise.... but if you open the account and do a minimal fund and keep it open or even if you get cancer then open an account and run your deposits thru it when you do hit a really big bill then the clients are ahead of the game....

Agreed.

Or even better - put in the max contribution each year and DO NOT touch it , even for medical situations.

When all other retirement accounts are maxed out - here is another one.

Why spend money from a HSA account at all? Would you pull money from your IRA to pay a dentist bill?

Only one slight flaw with this strategy...

You need money.

 

[GreenSky]

GreenSky

What happens if they have a large claim and you've influenced them not to open the account? They can't go back and get the tax savings. Could be $1,000 or more.

What gave you the impression I would influence them NOT to open an account? I always recommend it but that's not my primary concern.

My first concern is to present a proper insurance policy - one that does not have them trade big premiums for small returns. I have an HSA but I would bet that less than 10% of my clients have one.

Rick

 

[Soaringagent]

What bank do you usually recommend for the HSA account side?

 

[TXINSURANCE]

HSA Bank - National Leaders in Health Savings Accounts

 

[Delta76]

I think HSA Bank is a good option, reasonable fees and gives you the investment option if desired.

Another option is to find a local bank that has reasonable fees and interest. Develop a relationship by sending them referrals and ask about doing some joint marketing, maybe a seminar for their clients concerned about their health insurance premiums and present the HSA as a possible solution.

 

[thereaper]

I've also found that most don't open it up unless they do it with the application.

When I follow up later they just haven't had time, etc.

I've also found people with current HDQPs that didn't know you had to have the HSA open before the date of the claim. They thought they could just do it all at the end of the year. Don't know whether to blame agents or clients.

My understanding of the HSA compatible plans are you don't have to open the HSA unless you want to, but you're saying that you HAVE to open one?

 

[somarco]

You are not required to open the HSA. Even if you open an account, you are not required to fund it.

But you cannot reimburse OOP expenses until the account is funded.

You are allowed to reimburse expenses after they are incurred, provided you have placed some money in the account prior to the expense.