4 ms·

This is starting to feel like the mortgage crisis again - specialty tools that are not in themselves bad, are being misused to bolster affordability and in the

This is starting to feel like the mortgage crisis again - specialty tools that are not in themselves bad, are being misused to bolster affordability and in the process create very bad financial situation. The HDHP + HSA are great for those that can afford them AND are in good health overall. Good employers also add to your HSA each year to help with the initial costs. The HSA is a lot better than the FSA, which creates bad incentives on use it or lose it money. The problem becomes when HDHP is used without a well funded HSA and with insufficient income to handle the deductible, together with health problems.

sokoloff 8y ago
We took a HDHP just in order to qualify for the HSA. It probably doesn't save us money on the health-care side, but the HSA as stealth additional retirement account more than makes up for us. https://www.madfientist.com/ultimate-retirement-account/ https://www.madfientist.com/ultimate-retirement-account/
- assblaster 8y ago
  I do as well. The best part of the HSA is that you can save your receipts and reimburse for those expenses 30 years later instead of right away so that you can pay with gains rather than principal.
war1025 8y ago
You phrase that as if the people choosing HDHP without a funded HSA could actually afford a traditional low deductible plan. My current insurance is something like $35k / year premiums for a 3k/6k family plan (which is actually a 6k/12k plan since 3k is when they start covering anything, and it isn't until 6k / 12k that they actually start picking up the whole bill) There is no way I could afford a "low deductible" plan.
- sologoub 8y ago
  That’s not what I’m saying at all. I’m saying as a society/country/large group of people, we are choosing to pretend to offer affordable healthcare options, but in reality using specialty products designed for relatively wealthy and healthy people as a mainstream option. For financial/healthcare situation described, we need a true affordable option, not an exotic instrument. As a society we did the same thing with exotic mortgages and pretended they were affordable.
  - war1025 8y ago
    I'm pretty sure I agree with you, but will admit it was hard for me to realize that is what you meant.

sokoloff 8y ago

We took a HDHP just in order to qualify for the HSA. It probably doesn't save us money on the health-care side, but the HSA as stealth additional retirement account more than makes up for us. https://www.madfientist.com/ultimate-retirement-account/ https://www.madfientist.com/ultimate-retirement-account/

assblaster 8y ago
I do as well. The best part of the HSA is that you can save your receipts and reimburse for those expenses 30 years later instead of right away so that you can pay with gains rather than principal.

war1025 8y ago

You phrase that as if the people choosing HDHP without a funded HSA could actually afford a traditional low deductible plan. My current insurance is something like $35k / year premiums for a 3k/6k family plan (which is actually a 6k/12k plan since 3k is when they start covering anything, and it isn't until 6k / 12k that they actually start picking up the whole bill) There is no way I could afford a "low deductible" plan.

sologoub 8y ago
That’s not what I’m saying at all. I’m saying as a society/country/large group of people, we are choosing to pretend to offer affordable healthcare options, but in reality using specialty products designed for relatively wealthy and healthy people as a mainstream option. For financial/healthcare situation described, we need a true affordable option, not an exotic instrument. As a society we did the same thing with exotic mortgages and pretended they were affordable.
- war1025 8y ago
  I'm pretty sure I agree with you, but will admit it was hard for me to realize that is what you meant.