Health Savings Accounts

[Sock_It_Away]

Hi everyone...  can't tell you how much I appreciate all of your knowledge.  I love to strategize in everything I do, so I look at personal finance as a hobby and a vital foundation in my life.

That being said, a popular health insurance strategy seems to be HSAs.  Here's what I know:

1. An HSA is a savings account that you use to pay for your routine health care expenses.
2. HSAs contain funds that are owned and controlled by you, the account holder.
3. HSA savings rollover every year for your health care expenses and/or retirement.
4. An HSA is portable, the funds remain with you regardless of employment.

All that being said, are HSAs for everyone?  The thought of controlling the funds designated for health care make me excited to say the least.

Are HSAs available to people who utilize their company's health insurance plans?  The cost of healthcare for me, 28 yrs of age working for a fortune 100 company, is excessive to say the least.  Out-of-pocket expenses top 100 dollars a month even when we are not at the doctor's office.

I feel that my wife and I being young, our healthcare costs are limited to check-ups and the occasional anti-biotic for whatever (big knock on wood there).  Babies coming soon I am sure.

As a strategy for ER, can starting an HSA now help combat the costs of healthcare when I am older?  Are HSAs a replacement or a supplement to what people have as health insurance coverage?

I really like the idea of controlling my own funds...  sort of what I believe should be happening with SS.  

-Matt

 

[Peter]

There's a good summary of HSAs here:

http://www.healthsavingsaccount-hsa.com/

If you are covered by a health plan at work, then it's unlikely that you will be eligible.

Peter

 

[Sock_It_Away]

Thanks for the link... i will read up.

 

[Semi Employed]

I am getting ready to get a high deductable medical insurance policy but my insurance agent doesn't do the banking part. Can anyone who has or is thinking of using an HSA tell me who has the best rates/fees for such an account?

 

[Peter]

I am getting ready to get a high deductable medical insurance policy but my insurance agent doesn't do the banking part. Can anyone who has or is thinking of using an HSA tell me who has the best rates/fees for such an account?

Don't know about 'best', but I'm using Home Federal Savings. There is an annual charge of $30 or so, which I don't like, but their customer service is OK, and inertia does the rest.

http://www.homefederalsavings.com/

Peter

 

[gvdan]

Can the monthly insurance premium be paid out of the HSA account? Or is it only for other expenses?

 

[REWahoo]

The definitive list of what you can use HSA funds to pay for is in IRS publication 502. I'm not sure about paying for medical insurance, but it clearly states dancing lessons are excluded .