4 ms·

My high deductable plan doesn't cover anything until I spend $1.5k on health costs in a year. (Except preventive health stuff, that's all covered.) After you pa

My high deductable plan doesn't cover anything until I spend $1.5k on health costs in a year. (Except preventive health stuff, that's all covered.) After you pay 1.5k they cover everything. My company and I pay a premium for this coverage (it's not nearly as high as the co-pay and HMO plans available). Really, when I got to the doctor once or twice a year, for a whopping grand total of about $70/visit, then spend MAYBE $100 on prescriptions/other medications with my prescription discount card, it's really not worth that extra $30 every two weeks. I don't want to pay for my hypochondriac neighbor's daily doctor visits, or for their kid's sniffles. The way I (and a lot of other Americans) see health insurance is that it should pay for things that would bankrupt you, I can handle the small stuff. The best part about HSAs is that they are pre-tax accounts, so they help with your income tax costs. This also has the effect of making medical things cheaper because you didn't lose 30%+ on that money before having to spend it. I'm just hoping Congress doesn't cut the usefulness of HSAs with their new health care garbage...

jrockway 16y ago
It's only tax-free if your contribution is less than the standard deduction. I don't spend $7500 on healthcare per year, so I can't even deduct it. Maybe if I buy a house I can't afford, then I'll have some deductable interest to push me over... (If your employer handles the FSA/HSA, then it's pre-tax no matter what. I'm W2, but my employer simply doesn't offer that benefit because it costs them too much money.) I don't want to pay for my hypochondriac neighbor's daily doctor visits, or for their kid's sniffles. Well, that's what the co-pay is for. $20 every time you visit the doctor adds up if you visit unnecessarily -- the real cost that the doctor bills the insurance company isn't even much higher than that. Insurance companies aren't losing money on people who see the doctor every week. (Why do I like the current system? Because the premium I pay is almost exactly matched to my monthly health maintenance cost. And I have protection in the case of disaster, or generally expensive medical procedures.)

jrockway 16y ago

It's only tax-free if your contribution is less than the standard deduction. I don't spend $7500 on healthcare per year, so I can't even deduct it. Maybe if I buy a house I can't afford, then I'll have some deductable interest to push me over... (If your employer handles the FSA/HSA, then it's pre-tax no matter what. I'm W2, but my employer simply doesn't offer that benefit because it costs them too much money.) I don't want to pay for my hypochondriac neighbor's daily doctor visits, or for their kid's sniffles. Well, that's what the co-pay is for. $20 every time you visit the doctor adds up if you visit unnecessarily -- the real cost that the doctor bills the insurance company isn't even much higher than that. Insurance companies aren't losing money on people who see the doctor every week. (Why do I like the current system? Because the premium I pay is almost exactly matched to my monthly health maintenance cost. And I have protection in the case of disaster, or generally expensive medical procedures.)