Ask it Early: Health Savings Account
September 25, 2009 6:03 AM
Ray Martin gives advice on Health Savings Accounts vs. Flexible Spending Accounts
Recent Segments See All Videos
Scroll Left Scroll Right
September 25, 2009 6:03 AM
Ray Martin gives advice on Health Savings Accounts vs. Flexible Spending Accounts
Stories More »
Take down this outdated article!!!!!!!
Hey! It worked for Reagan
September 25, 2009 6:03 AM
another article at least 5 to 6 months old-How much financial trouble does CBS really have?
My solution? Universal health care (Medicare for all). Stop this insane fragmenting of people into age groups and health groups and wealth groups and regional groups and risk groups. Put us all into one pool and spread the risk and cost.
- by NW citizen September 25, 2009 7:31 PM EDT
- Ah, the HSA as panacea for the health care crisis.
- Reply to this comment
See all 11 CommentsMyth: HSA-qualifying high-deductible accounts charge such low premiums, you'll have money to spare to meet your deductible!
Reality: My premiums now total over 10% of my annual net income. They go up over 20% annually. It's really tough to pay your own way when all this money is siphoned off by the private insurance industry.
Myth: Your HSA balance will grow and grow, rolling over from year to year!
Reality: HSA money, needed for health care expenses, must be kept in a liquid investment (read: low, low interest). I struggle to keep enough money in the HSA to avoid monthly service fees that would negate that paltry interest. Basically, I contribute whatever I'll need for health care expenses as they come up; I pass the $ through the HSA and spend it, which amounts to a 15% discount from the tax deduction.
Myth: An HSA policy means you're covered in the event of catastrophic illness.
Reality: After paying out of pocket for dental care (surprise: teeth are part of the body!) and vision care (surprise: eyes are too!) and so much else not covered by the "health care" policy, I've barely made a dent in the deductible. On top of the annual premiums, I'd need to spend another 10%+ of my income to meet the deductible. 20%+ of my annual income before getting actual coverage (beyond a flu shot and a restricted preventive care visit). And come January, start all over again.
Don't get me wrong: I'm thankful for the HSA option that accompanies the only policy I can possibly afford. It helps, a little. But I'm not *covered*. I'm not secure. I live in fear of being wiped out financially in the event of a serious illness. I am UNDERINSURED. Let's not pretend the HSA is a solution.