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Ask Dave

Good News...HSAs Are Great!

Dave shows why HSA's are such a great option in the health care crunch we face today.

QUESTION: Anthony is considering switching his traditional health insurance to a Health Savings Account (HSA).  Is that a good idea?

ANSWER: The HSA could be the answer to the health care crisis we have in America.  For example, if you have a typical couple at 30-years-old, they can get an 80/20, $1,000 deductible policy for $250 a month.  If that same couple took out an HSA they could get that same plan for $150 a month. 

The difference is that the HSA will pay 100% of the costs after the deductible.  But the deductible is much higher – like $5,000.  You’re saving $100 a month though.  With the HSA, you’re also allowed to save your deductible annually into a tax-deductible savings account, and it grows tax-deductible.   

For this type of health care insurance to work, you need to have a good emergency fund for the minor doctor’s visits that will come up.  You also need to take the $100 each month that you’re saving and put that toward saving. 

The HSA is fantastic for people who are not chronically ill.  For a healthy family, the HSA is a perfect plan.  

The other great thing about the HSA accounts is that it forces the insured to apply market pressure to keep medical costs reasonable.


Want to cut down on your healthcare costs? Check out how to save money on health insurance.