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Ask Dave

Health Savings Accounts a Good Plan?

Are Health Savings Accounts really a good idea? Dave most certainly think so because of several reasons.

QUESTION: Betty wants to know what Dave thinks about Health Savings Accounts (HSAs) and if she can have regular medical insurance in addition to an HSA.

ANSWER: HSAs are great and when you have one, you don’t need additional medical insurance. 

Regular medical insurance means you have a deductible, you have an 80/20 plan, you pay for doctors visits, etc.  If you have a major medical problem, you pay your deductible and then 20% of the costs up to the stop loss. 

With an HSA, you have a higher deductible, but many HSA plans pay 100% after you pay the deductible.  You’re also able to save your premiums into a good mutual fund – pre-tax – that help you cover the deductible or other medical expenses. 

The HSA is the way to go if you’re healthy.  It’s a good savings account attached to a high deductible health insurance plan and it puts the consumer in charge.  You have money in your account that you saved and when you have medical bills, you can pay with cash.  It helps the consumer hold the medical world accountable.