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Guys you should really be maxing out your HSA!!

PaulDavisThe1st 3y ago
We had/have one. But then all HSA-compatible bronze insurance plans exited New Mexico, and now we can no longer contribute to our existing HSA.
flashback2199 3y ago
HSA requires a high deductible plan, so, no.
- iends 3y ago
  It’s been years since a PPO has been worth it for my family. An HDHP with ~7,000 out of pocket max has been the best we could get via our employers.
  - xyst 3y ago
    Health insurance is one of the greatest grifts in this country. My employer and I pay these corporate mega giants every pay period for the privilege of them paying for my care. What do I get in return? Oh I still pay out of pocket until deductible met. Oh even after deductible met, there’s an out of pocket maximum. Only then will insurance fully kick in. Oh and you can only pick “in network” providers, otherwise another set of complex policies and limits take effect. ??? They create the rules. Make it as complex as possible for all parties (ie, medical coding/billing). Doctors get screwed as much as possible. Cost of medical care artificially inflated due to dedicated teams and high amount of time spent to properly code and bill each visit. Insurance companies even have dedicated teams to deny as many claims as possible. Want that expensive treatment for your rare illness covered? Insurance will fight your doctor until either you or doctor give up, pay out of pocket, or just forego the treatment completely. We may have the most advanced healthcare in the world. But it’s largely not accessible, and it shows in world health care statistics
dclowd9901 3y ago
Serious question: who uses HSAs? Only folks with ongoing high cost medical needs?
- gmoot 3y ago
  It really depends on the plan and on your other options. At Google the HSA is cheapest for almost everyone, whether you are a single person with almost no health expenses or a family with high expenses.
- wenc 3y ago
  Usually (single) people with high-deductible plans with no medical conditions and are able to pay out of pocket. Companies I've worked for will also match up to a $500 contribution, so it's free money. On top of that, the HSA is a triple tax advantaged account (even better than a Roth IRA), so you contributions are tax-free (lowers your taxable income today), the growth is tax-free (no capital gains), and withdrawals are tax-free (for medical expenses). You can invest the money in the HSA in index funds and such. As an investment account, it's as good as you can get. If you're healthy young person who has enough cash to pay up to the deductible amount (mine is $2500 but depends on your plan) for unforeeseen medical expenses, and have a company match, you should at least contribute to a HSA up to the match amount. It's free money. And hold on to it until retirement. You also don't lose the HSA value when you switch or lose jobs. Also if you do need to withdraw from the HSA for health expenses, you can. Although if you can afford the expenses, just hold on the medical receipts and leave the money in the HSA to grow. If you do need to do a large withdrawal, gather up your medical receipts and you can withdraw up to that amount with no penalty.
deleted 3y ago
[deleted]
dataflow 3y ago
Isn't HSA annual contribution limit something like $4k? That's not really going to be life changing when you're old, retired, and in need of medical care, is it?
- xboxnolifes 3y ago
  $4k * 30-40 years of tax free, both in and out, investable income is a lot of savings for healthcare. The contribution limit also increases nearly every year.
- wenc 3y ago
  When you factor in compounding and triple tax advantages (contribution/growth/withdrawals are tax exempt), it can be quite a lot of money over 20-30 years. HSAs can be invested as well say in a target fund or index which should net 5-10% per year. Like a 401k, contributions also lower your taxable income so they save you from taxes today. Try it yourself: https://www.hsabank.com/hsabank/Learning-Center/HSA-Savings-Calculator https://www.hsabank.com/hsabank/Learning-Center/HSA-Savings-...
acdw 3y ago
honestly I'm so sick of this attitude. it's the same as the recycling push...when like a dozen companies are creating the vast majority of pollution, there's not a lot us little people can do. HSAs are a symptom of an extremely broken system. we should fix the system, not max out on our HSAs (if we even can...see the other replies to this post)

We had/have one. But then all HSA-compatible bronze insurance plans exited New Mexico, and now we can no longer contribute to our existing HSA.

flashback2199 3y ago

HSA requires a high deductible plan, so, no.

iends 3y ago
It’s been years since a PPO has been worth it for my family. An HDHP with ~7,000 out of pocket max has been the best we could get via our employers.
- xyst 3y ago
  Health insurance is one of the greatest grifts in this country. My employer and I pay these corporate mega giants every pay period for the privilege of them paying for my care. What do I get in return? Oh I still pay out of pocket until deductible met. Oh even after deductible met, there’s an out of pocket maximum. Only then will insurance fully kick in. Oh and you can only pick “in network” providers, otherwise another set of complex policies and limits take effect. ??? They create the rules. Make it as complex as possible for all parties (ie, medical coding/billing). Doctors get screwed as much as possible. Cost of medical care artificially inflated due to dedicated teams and high amount of time spent to properly code and bill each visit. Insurance companies even have dedicated teams to deny as many claims as possible. Want that expensive treatment for your rare illness covered? Insurance will fight your doctor until either you or doctor give up, pay out of pocket, or just forego the treatment completely. We may have the most advanced healthcare in the world. But it’s largely not accessible, and it shows in world health care statistics

dclowd9901 3y ago

Serious question: who uses HSAs? Only folks with ongoing high cost medical needs?

gmoot 3y ago
It really depends on the plan and on your other options. At Google the HSA is cheapest for almost everyone, whether you are a single person with almost no health expenses or a family with high expenses.
wenc 3y ago
Usually (single) people with high-deductible plans with no medical conditions and are able to pay out of pocket. Companies I've worked for will also match up to a $500 contribution, so it's free money. On top of that, the HSA is a triple tax advantaged account (even better than a Roth IRA), so you contributions are tax-free (lowers your taxable income today), the growth is tax-free (no capital gains), and withdrawals are tax-free (for medical expenses). You can invest the money in the HSA in index funds and such. As an investment account, it's as good as you can get. If you're healthy young person who has enough cash to pay up to the deductible amount (mine is $2500 but depends on your plan) for unforeeseen medical expenses, and have a company match, you should at least contribute to a HSA up to the match amount. It's free money. And hold on to it until retirement. You also don't lose the HSA value when you switch or lose jobs. Also if you do need to withdraw from the HSA for health expenses, you can. Although if you can afford the expenses, just hold on the medical receipts and leave the money in the HSA to grow. If you do need to do a large withdrawal, gather up your medical receipts and you can withdraw up to that amount with no penalty.

deleted 3y ago

[deleted]

dataflow 3y ago

Isn't HSA annual contribution limit something like $4k? That's not really going to be life changing when you're old, retired, and in need of medical care, is it?

xboxnolifes 3y ago
$4k * 30-40 years of tax free, both in and out, investable income is a lot of savings for healthcare. The contribution limit also increases nearly every year.
wenc 3y ago
When you factor in compounding and triple tax advantages (contribution/growth/withdrawals are tax exempt), it can be quite a lot of money over 20-30 years. HSAs can be invested as well say in a target fund or index which should net 5-10% per year. Like a 401k, contributions also lower your taxable income so they save you from taxes today. Try it yourself: https://www.hsabank.com/hsabank/Learning-Center/HSA-Savings-Calculator https://www.hsabank.com/hsabank/Learning-Center/HSA-Savings-...

acdw 3y ago

honestly I'm so sick of this attitude. it's the same as the recycling push...when like a dozen companies are creating the vast majority of pollution, there's not a lot us little people can do. HSAs are a symptom of an extremely broken system. we should fix the system, not max out on our HSAs (if we even can...see the other replies to this post)