HSA Summary

[TromboneAl]

I would not include your HSA investments as a "cost."

I look at my premiums as a cost, and think of my HSA fund as an IRA.

My HSA money is in Vanguard with a .5% additional annual fee (plus there's an annual $35 fee).

[scrubradio]

Originally Posted by TromboneAl

I would not include your HSA investments as a "cost."*

I look at my premiums as a cost, and think of my HSA fund as an IRA.

My HSA money is in Vanguard with a .5% additional annual fee (plus there's an annual $35 fee).

I understand what your saying.* The reason I include them as
a "cost" is because I will have to have the money to fund them
even though they will behave like an IRA.*

At the point of needing them I am planning on not working so
I would have to fund them using investment returns.* Therefore
I associate them with the "costs" cateogory

Am I making sense? Is there a better way to look at this?

[TromboneAl]

I would look at it as reinvesting dividends, or moving money from one account to another. If you're funding it with taxable accounts, it's true that your money will be less accessible, but it's still your money.

[MooreBonds]

Originally Posted by scrubradio

I understand what your saying. The reason I include them as
a "cost" is because I will have to have the money to fund them
even though they will behave like an IRA.

At the point of needing them I am planning on not working so
I would have to fund them using investment returns. Therefore
I associate them with the "costs" cateogory

Am I making sense? Is there a better way to look at this?

I agree with what you said above, scrubradio. Also, for those of you who are doing HSA comparison analysis, don't forget: if you have a 'traditional' health plan, you (currently) have small co-pays. You WILL undoubtedly have SOME expenses (annual physicals, blood work, etc.) that you WILL be paying more on compared to if you had your traditional insurance plan. Therefore, to be more accurate, I would suggest estimating the average annual healthcare expenses you will pay w/ an HSA that is above what you would pay with a traditional plan, and count that as an expense against your HSA assets, along with an assumption that at least one (probably two) of the years could see you incur 'substantial' expenses that would require you covering close to all of your deductible.

The rest of the HSA assets, however, I would include as a financial investment asset as TromboneAl suggests.

case in point: I am 29, very healthy. However, in July, I got into an argument w/ my father. I screamed at the top of my lungs for a total of 5 seconds for just the second time in my life. Later that night, when I went to work out, I felt a sharp stabbing pain in my upper left rear portion of my brain. It continued during my workout (and occurred to a lesser frequency later that night) so I ended it early. I went to my internist the next day. She didn't think it was a brain anurysm, but strongly suggested an MRI to be sure. I agreed (given that I don't want to mess around with anything related to my brain). The MRI bill was $2,970, plus $390 for the radiologist to read my print out. Thanks to my HDHP, they knocked the bill down to just $1,100 for the MRI and $150 for the radiologist. My point: I am an extremely healthy 29 year old, and random small things like the above can happen (which I never would have expected). I can only imagine what could happen when I (hopefully still as healthy) reach the 55-65 bracket. While you're healthy, you might think "Oh, I won't run to the doctor for anything unless it's serious"....but when you have questions about something that you feel/experience, you're more apt to run the tests than to just brush it off.

[TromboneAl]

Anything on the MRI? Pain gone?

[MooreBonds]

Originally Posted by TromboneAl

Anything on the MRI? Pain gone?

Thankfully, nothing showed up on the MRI (unforutnately, even though I shelled out $1,400 for it, I didn't get a copy of my brain to frame and look at). My doctor thinks it was probably just a nerve. The pain came and went over the first few days, albeit with an exponential decrease. After a few days, it pretty much went away. So, it was an interesting lesson on stress and stresses to your system and how it can effect your body in amazing ways.

[Mr._johngalt]

Originally Posted by Peter76

Thankfully, nothing showed up on the MRI (unforutnately, even though I shelled out $1,400 for it, I didn't get a copy of my brain to frame and look at). My doctor thinks it was probably just a nerve. The pain came and went over the first few days, albeit with an exponential decrease. After a few days, it pretty much went away. So, it was an interesting lesson on stress and stresses to your system and how it can effect your body in amazing ways.

I too have had some MRIs on my head. They never found anything.

JG

[Sheryl]

Originally Posted by Peter76

Thankfully, nothing showed up on the MRI (unforutnately, even though I shelled out $1,400 for it, I didn't get a copy of my brain to frame and look at).

If you really want it you are entitled to copies of your MRI's. I picked mine up the other day. Popped the CD in my computer and there it was - my brain. Interesting, but not very decorative.

[REWahoo]

Originally Posted by TromboneAl

My HSA money is in Vanguard with a .5% additional annual fee (plus there's an annual $35 fee).

Al, I'm getting close to setting up an HSA account and noticed the annual fee at Health Savings Administrators is now $39. Have there been any other fee increases this year? Are you still happy with them?

[retire@40]

Originally Posted by scrubradio

...Total cost for the 10 year period: $60,500 ($26,000 HSA, $34,500 HDHI)

Monthly cost for first 5 years: $475 ($216 HSA, $259 HDHI)

Monthly cost for 2nd 5 years: $532 ($216 HSA, $316 HDHI)

...Bottom line seems to be that $100k of investments recieving a return of 6%
would cover the medical side of early retirement and would only be necessary
until medicare/medicaid begin. At that point I would only have to worry about
the copays for them and I may still have investments left over in HSA if my health
doesn't go south.

Am I anywhere near close?

I would think you need more like $150K to $200K of investments to pay your $500/month premiums. ($500/mo x 12 = $6,000 x 25 = $150K)

You will need $65K in investments just to pay for max yearly deductibles of $2600.

[TromboneAl]

Al, I'm getting close to setting up an HSA account and noticed the annual fee at Health Savings Administrators is now $39. Have there been any other fee increases this year? Are you still happy with them?

Yes, everything has gone fine. I've had very little contact with them. Checking my account just now I noticed that they are deducting the .5% annual expense fee from the account itself. I just called to see about this, got a person immediately (no phone menu or anything!) and asked whether I could send in that fee separately. Answer was "No," (but it was delivered with a smile).

It's easy to log on and see the activity in your account.

I didn't receive any notification about the new, higher fees.

Bottom line: Still recommended.

[scrubradio]

Originally Posted by retire@40

I would think you need more like $150K to $200K of investments to pay your $500/month premiums. ($500/mo x 12 = $6,000 x 25 = $150K)

You will need $65K in investments just to pay for max yearly deductibles of $2600.

hmm...my math is a bit shaky. Thank you.

[REWahoo]

Originally Posted by TromboneAl

Bottom line: Still recommended.

Thanks. I'll probably go with them assuming my pending application for a HSA policy from BC/BS is approved.

[TromboneAl]

I don't want to sound like I'm pushing this company, but I just got a notice that their maintenance fee is going from .5% per year to .36% per year.

[shiny]

Can you pay into the HSA in one lump sum at the beginning of the year or does it have to be paid monthly (in order to make sure you are maintaining your health insurance)?

[eridanus]

Originally Posted by shiny

Can you pay into the HSA in one lump sum at the beginning of the year

Yes but backing it out sounds like it would be painful.

[Martha]

Originally Posted by eridanus

Yes but backing it out sounds like it would be painful.

Sounds like a medical procedure. :P

[shiny]

Originally Posted by eridanus

Yes but backing it out sounds like it would be painful.

By "backing it out" do you mean what you would have to do if you did change your insurance mid-year?

[eridanus]

Originally Posted by shiny

By "backing it out" do you mean what you would have to do if you did change your insurance mid-year?

Yep.

Actually, backing out excess contributions isn't too difficult. Page 6, "Excess Contributions,"

http://www.irs.gov/pub/irs-pdf/p969.pdf