HSA Vs Individual Health Ins.

[theinsuranceman]

Can some of you experts explain the advantages/disadvantages of HSA vs individual health ins.? Pros and cons. And what would you recommend for a 53 yr. old male in good health? Please discuss tax bene.,deductibles, and anything else that can educate a few of us. Thanks!

 

[bobson]

Can some of you experts explain the advantages/disadvantages of HSA vs individual health ins.? Pros and cons. And what would you recommend for a 53 yr. old male in good health? Please discuss tax bene.,deductibles, and anything else that can educate a few of us. Thanks!

Uh, in order to contribute to an HSA you have to have a (qualified high deductible) health insurance plan.

So I'm really not sure what you are asking? The advantage of a high deductible health plan is that the premium is lower than a low deductible health plan.

Did that answer your question?

 

[JustinUpright]

An HSA isn't health care plan. It is a Health Savings Account and it works with your High Deductible plan (individual or group).

The basics are you can put in a certain amount a year ($5890 for family in 2009) tax free. The interest grows tax free. You use it for anything medical at the drug store. Rx, over the counter meds like claritan, cough syurp, bandaids.

My favorite part is you are using your own money for medical services so you will be more careful where you spend it.

The money rolls over every year. If your not sick for two years and then you have a run of bad luck then you have that much more in your account to cover those expenses. As your HSA grows you can raise your deductible and pay lower premiums. If you stay healthy till you retire you have a little nest egg that didn't get spent on health insurance.

I once thought that HSA's where the only thing you need till just recently. You can't have a co-pay with an HSA so if you have young kids the HSA may not be the way to go. Co-pays come in handy if you take several kids to the Doctor regularly. The cost in premium goes up quite a bit with a co-pay.

I do think the introduction of the HSA is a true way to reform health care. Insurance isn't the problem. The rising cost of medical care and people using co-pays to go to the emergency room for a stubbed toe is what make premiums go up. HSA's could really make health care cheaper by creating competition in market. I know if I am paying for it we are looking for a deal not the emergency room. But if your paying then it don't matter where or what treatment I get I only have to pay $35.

 

[somarco]

HSA explained

 

[jsd1239]

An HSA isn't health care plan. It is a Health Savings Account and it works with your High Deductible plan (individual or group).

The basics are you can put in a certain amount a year ($5890 for family in 2009) tax free. The interest grows tax free. You use it for anything medical at the drug store. Rx, over the counter meds like claritan, cough syurp, bandaids.

My favorite part is you are using your own money for medical services so you will be more careful where you spend it.

The money rolls over every year. If your not sick for two years and then you have a run of bad luck then you have that much more in your account to cover those expenses. As your HSA grows you can raise your deductible and pay lower premiums. If you stay healthy till you retire you have a little nest egg that didn't get spent on health insurance.

I once thought that HSA's where the only thing you need till just recently. You can't have a co-pay with an HSA so if you have young kids the HSA may not be the way to go. Co-pays come in handy if you take several kids to the Doctor regularly. The cost in premium goes up quite a bit with a co-pay.

I do think the introduction of the HSA is a true way to reform health care. Insurance isn't the problem. The rising cost of medical care and people using co-pays to go to the emergency room for a stubbed toe is what make premiums go up. HSA's could really make health care cheaper by creating competition in market. I know if I am paying for it we are looking for a deal not the emergency room. But if your paying then it don't matter where or what treatment I get I only have to pay $35.

The problem is the Dems want to get rid of HSA's, since they can't tax them. And if they can't tax it it's no good.

 

[Rivers1]

Just to get the info correct... families can contribute up to $5950 and individuals $3000 in their HSA account for the year 2009.
Top-line tax deduction

 

[JustinUpright]

Just to get the info correct... families can contribute up to $5950 and individuals $3000 in their HSA account for the year 2009.
Top-line tax deduction

thought it was 5980 my bad. Thanks for the clarification.

 

[somarco]

Actually, it is not a tax deduction but rather an income deduction.

 

[moonlightandmargaritas]

Just to get the info correct... families can contribute up to $5950 and individuals $3000 in their HSA account for the year 2009.

Those 55 and over can contribute an additional $1,000 as a "catch-up" contribution.

Top-line tax deduction

Close!

More correctly known to accounting types as an "above-the-line deduction", or adjustment to income.

 

[Rivers1]

Those 55 and over can contribute an additional $1,000 as a "catch-up" contribution.

More correctly known to accounting types as an "above-the-line deduction", or adjustment to income.

Yes and yes, somarco posted a nice link with details. Thx!

I've had several clients lately transfer a portion of an underperforming IRA into their HSA to fully fund it right from the get-go.

I don't know how you guys feel, but I love HSA's. Puts the consumer more in control of their health care dollar. I hate that Obama's reform is trying to torpedo them. Shame...