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ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
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Anyone have a Health Savings Account?
So I was complaining about how much my health care expenses went up this year. I get health insurance through work and they pay part of it, so I know I'm luckier than most to start with. But this year the weekly contributions, deductibles and co-pays all increased and now the cost annually is double what it was last year.
My friend told me she got an HSA this year and it was the "little secret" nobody tells you about and how wonderful it is. The way she explained it....she puts money away every week in a separate account but the money is always hers and never expires. She can use it for health care expenses and when she meets a certain annual deductible, the insurer pays the rest. She said it was so much cheaper.
I don't understand this, and the articles I read online don't help me. How is this really any different? You still have to put money aside only for health expenses, and then instead of a copay, you have to pay the doctors bill. I understand that the money rolls over from year to year but who cares if you only have to pay up to a deductible anyway?
Seems like an HSA is only worth it if the deductible is LESS than what you would pay in annual contributions through work. Am I understanding this wrong?
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Posted 6/19/13 7:27 PM  |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
An HSA is just a health savings account where you contribute pre-tax money that will be put towards your medical expenses. While the money does roll over year to year there is a cap for how much you can contribute each calendar year.
I'm not quite sue what your friend thinks is the big secret here, I'm pretty sure HSA's go hand in hand with high deductible insurance plans. I've had both for years. The HSA just allows you to save for your medical expenses with pre-tax dollars which in actuality saves you money when it's time to pay up. Should you incur no medical expenses in a year obviously you won't tap your HSA. With a high deductible plan, once you meet your deductible and coinsurance you are no longer responsible for any of your medical expenses in that calendar year........the insurance company pays 100% for all medical costs and Rx. I am assuming that is what she is trying to tell you. But that would happen whether you had an HSA or not.
I maxed out my deductible and coinsurance this year which for me was $7500 OOP. I am using my HSA account to pay off my medical bills (DH contributes to it weekly from his paycheck) and now when any of us go to the doctor there is to charge to us.
I guess in short, an HSA is just a savings account which allows you to put aside pre-tax dollars to be used towards your medical expenses. A deductible is what you pay OOP before your insurance takes over.
Message edited 6/19/2013 7:48:47 PM.
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| Posted 6/19/13 7:47 PM |
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ChilisWife
God Bless America
Member since 5/05 3572 total posts
Name:
A.K.
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Re: Anyone have a Health Savings Account?
Thanks. My contributions to the employer plan are also pre-tax. I guess I just don't see where I am saving money. Either way I have to contribute X amount somewhere.
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| Posted 6/19/13 9:11 PM |
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CL2012
LIF Toddler
Member since 1/13 374 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by ChilisWife
Thanks. My contributions to the employer plan are also pre-tax. I guess I just don't see where I am saving money. Either way I have to contribute X amount somewhere.
You're still contributing to your employer's plan because that pays for you to have insurance coverage. The HSA is an additional pretax deduction from your paycheck. The savings comes in the form of a further reduced tax liability. If you put aside $2,000 in 2013 into a HSA, that is $2,000 less that you are responsible for paying federal and state taxes on. The funds in the HSA are used to pay for medical expenses throughout the year: RXs, copays, deductibles...
HTH!
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| Posted 6/20/13 12:01 AM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Anyone have a Health Savings Account?
Posted by Hofstra26
An HSA is just a health savings account where you contribute pre-tax money that will be put towards your medical expenses. While the money does roll over year to year there is a cap for how much you can contribute each calendar year.
I'm not quite sue what your friend thinks is the big secret here, I'm pretty sure HSA's go hand in hand with high deductible insurance plans. I've had both for years. The HSA just allows you to save for your medical expenses with pre-tax dollars which in actuality saves you money when it's time to pay up. Should you incur no medical expenses in a year obviously you won't tap your HSA. With a high deductible plan, once you meet your deductible and coinsurance you are no longer responsible for any of your medical expenses in that calendar year........the insurance company pays 100% for all medical costs and Rx. I am assuming that is what she is trying to tell you. But that would happen whether you had an HSA or not.
I maxed out my deductible and coinsurance this year which for me was $7500 OOP. I am using my HSA account to pay off my medical bills (DH contributes to it weekly from his paycheck) and now when any of us go to the doctor there is to charge to us.
I guess in short, an HSA is just a savings account which allows you to put aside pre-tax dollars to be used towards your medical expenses. A deductible is what you pay OOP before your insurance takes over.
yep all this.
For our company, if we participate in a wellness group and have our blood taken yearly as a health check, we get $750 each, into our HSA as contribution from my employer. So for me that's $1500 free money for health care. I add that to my FSA which I contribute to. Those combined cover our deductible. CDHD (High Deductible)
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| Posted 6/20/13 12:28 AM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Anyone have a Health Savings Account?
Not all FSA funds roll over to the next year as mine doesn't. You have to judge how much money you will need for meds, co=pays, procedures in a given year. My first year, we ran out of money in June, the following year Sept. You are saving off the tax which is small but adds up
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| Posted 6/20/13 7:41 AM |
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PitterPatter11
Baby Boy is Here!
Member since 5/11 7619 total posts
Name:
Momma <3
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Re: Anyone have a Health Savings Account?
Only certain plans are eligible for a HSA - they usually have high deductibles. DH and I have a plan like this. We pay for the premium for the insurance and also have a HSA. A HSA is similar to a flexible savings account, but can be rolled over each year.
Honestly, I do not think it is "that great" of a system. We need to pay 100% of all medical costs up to 3500 and then it goes 80/20 until we reach ~5500. That is A LOT of money on top of the premium we are already paying....
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| Posted 6/20/13 8:58 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by BabyBoy
Not all FSA funds roll over to the next year as mine doesn't. You have to judge how much money you will need for meds, co=pays, procedures in a given year. My first year, we ran out of money in June, the following year Sept. You are saving off the tax which is small but adds up
FSA is different than HSA. With the HSA every cent you contribute carries over from year to year. You never lose any of it. With the FSA, if you don't accurately estimate your medical costs you will either come up short that year or alternatively, lose money. HSA's aren't like that.
Message edited 6/20/2013 9:12:24 AM.
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| Posted 6/20/13 9:11 AM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Anyone have a Health Savings Account?
So would you guys in the know recommend an HSA over an FSA?
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| Posted 6/20/13 12:35 PM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Anyone have a Health Savings Account?
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
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| Posted 6/20/13 1:28 PM |
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DreamComeTrue
LIF Adolescent
Member since 1/11 541 total posts
Name:
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Anyone have a Health Savings Account?
I'm not sure if this is the same thing you are talking about but DH has money from his paycheck put into an account that we use for medical purposes only. We have a debit card for the account and we use it for office visits or at the pharmacy for prescriptions. I think the purpose for us is so we always have money aside.
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| Posted 6/20/13 1:39 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by IansMommy23
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
From Chase Bank website:
All unused funds in your HSA carry over into the next year and continue to accrue interest. If you have funds in the HSA Investment Account, they too will remain intact. The HSA belongs to you as an individual. Unlike other programs such as a Flexible Spending Account, you do not lose the balance in your HSA at the end of the year.
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Any contribution to an HSA account is yours, you lose nothing. I prefer it to the FSA that we had a few years ago. It was too difficult to estimate our medical needs for the year and get it right. With the HSA, we don't have to worry......there is no loss. Maybe you have an FSA and don't realize it, all HSA accounts carry over.
More HSA faqs
HSA
Message edited 6/20/2013 2:22:54 PM.
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| Posted 6/20/13 2:17 PM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Anyone have a Health Savings Account?
Posted by Hofstra26
Posted by IansMommy23
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
From Chase Bank website:
All unused funds in your HSA carry over into the next year and continue to accrue interest. If you have funds in the HSA Investment Account, they too will remain intact. The HSA belongs to you as an individual. Unlike other programs such as a Flexible Spending Account, you do not lose the balance in your HSA at the end of the year.
Any contribution to an HSA account is yours, you lose nothing. I prefer it to the FSA that we had a few years ago. It was too difficult to estimate our medical needs for the year and get it right. With the HSA, we don't have to worry......there is no loss. Maybe you have an FSA and don't realize it, all HSA accounts carry over.
More HSA faqs
HSA
definitely sounds like i have an FSA...but the company calls it Health Care Savings Account
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| Posted 6/20/13 2:22 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by DreamComeTrue
I'm not sure if this is the same thing you are talking about but DH has money from his paycheck put into an account that we use for medical purposes only. We have a debit card for the account and we use it for office visits or at the pharmacy for prescriptions. I think the purpose for us is so we always have money aside.
Could be either an FSA or an HSA. You would have to check your insurance paperwork to be sure. If you have a high deductible insurance plan it's likely that it is an HSA.
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| Posted 6/20/13 2:25 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by IansMommy23
Posted by Hofstra26
Posted by IansMommy23
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
From Chase Bank website:
All unused funds in your HSA carry over into the next year and continue to accrue interest. If you have funds in the HSA Investment Account, they too will remain intact. The HSA belongs to you as an individual. Unlike other programs such as a Flexible Spending Account, you do not lose the balance in your HSA at the end of the year.
Any contribution to an HSA account is yours, you lose nothing. I prefer it to the FSA that we had a few years ago. It was too difficult to estimate our medical needs for the year and get it right. With the HSA, we don't have to worry......there is no loss. Maybe you have an FSA and don't realize it, all HSA accounts carry over.
More HSA faqs
HSA
definitely sounds like i have an FSA...but the company calls it Health Care Savings Account
I would think so, just because you said you lose your money. We had that issue with our FSA when we had one. In fact, we had money to burn at the end of the year and we didn't want to lose it so we stocked up on any OTC meds we needed. At the time, you were allowed to use FSA for that. 
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| Posted 6/20/13 2:28 PM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Anyone have a Health Savings Account?
Posted by Hofstra26
Posted by IansMommy23
Posted by Hofstra26
Posted by IansMommy23
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
From Chase Bank website:
All unused funds in your HSA carry over into the next year and continue to accrue interest. If you have funds in the HSA Investment Account, they too will remain intact. The HSA belongs to you as an individual. Unlike other programs such as a Flexible Spending Account, you do not lose the balance in your HSA at the end of the year.
Any contribution to an HSA account is yours, you lose nothing. I prefer it to the FSA that we had a few years ago. It was too difficult to estimate our medical needs for the year and get it right. With the HSA, we don't have to worry......there is no loss. Maybe you have an FSA and don't realize it, all HSA accounts carry over.
More HSA faqs
HSA
definitely sounds like i have an FSA...but the company calls it Health Care Savings Account
I would think so, just because you said you lose your money. We had that issue with our FSA when we had one. In fact, we had money to burn at the end of the year and we didn't want to lose it so we stocked up on any OTC meds we needed. At the time, you were allowed to use FSA for that.
yeah! i thought that was included and added that into my cost! now i found out i can't use it. so i may actually be losing money this year.
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| Posted 6/20/13 2:39 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by IansMommy23
Posted by Hofstra26
Posted by IansMommy23
Posted by Hofstra26
Posted by IansMommy23
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
From Chase Bank website:
All unused funds in your HSA carry over into the next year and continue to accrue interest. If you have funds in the HSA Investment Account, they too will remain intact. The HSA belongs to you as an individual. Unlike other programs such as a Flexible Spending Account, you do not lose the balance in your HSA at the end of the year.
Any contribution to an HSA account is yours, you lose nothing. I prefer it to the FSA that we had a few years ago. It was too difficult to estimate our medical needs for the year and get it right. With the HSA, we don't have to worry......there is no loss. Maybe you have an FSA and don't realize it, all HSA accounts carry over.
More HSA faqs
HSA
definitely sounds like i have an FSA...but the company calls it Health Care Savings Account
I would think so, just because you said you lose your money. We had that issue with our FSA when we had one. In fact, we had money to burn at the end of the year and we didn't want to lose it so we stocked up on any OTC meds we needed. At the time, you were allowed to use FSA for that.
yeah! i thought that was included and added that into my cost! now i found out i can't use it. so i may actually be losing money this year.
That stinks. 
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| Posted 6/20/13 2:40 PM |
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Xelindrya
Mommy's little YouTube Star!
Member since 8/05 14470 total posts
Name:
Veronica
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Re: Anyone have a Health Savings Account?
Posted by IansMommy23
Posted by Hofstra26
Posted by IansMommy23
Posted by Hofstra26
Posted by IansMommy23
I have HSA and DSA (dependent savings account)...these accounts DO NOT roll over (at least they don't at my company). it is helpful tho. but if you don't use it...you lose it.
From Chase Bank website:
All unused funds in your HSA carry over into the next year and continue to accrue interest. If you have funds in the HSA Investment Account, they too will remain intact. The HSA belongs to you as an individual. Unlike other programs such as a Flexible Spending Account, you do not lose the balance in your HSA at the end of the year.
Any contribution to an HSA account is yours, you lose nothing. I prefer it to the FSA that we had a few years ago. It was too difficult to estimate our medical needs for the year and get it right. With the HSA, we don't have to worry......there is no loss. Maybe you have an FSA and don't realize it, all HSA accounts carry over.
More HSA faqs
HSA
definitely sounds like i have an FSA...but the company calls it Health Care Savings Account
I would think so, just because you said you lose your money. We had that issue with our FSA when we had one. In fact, we had money to burn at the end of the year and we didn't want to lose it so we stocked up on any OTC meds we needed. At the time, you were allowed to use FSA for that.
yeah! i thought that was included and added that into my cost! now i found out i can't use it. so i may actually be losing money this year.
I went to the doctor at the end of last year and said "im losing FSA money, I need Rx for...." and gave him a list. Claritin and Benedryl for AJ that won't go bad. I got contact solution included in mine as well (already included OTC).
I set it up for my HSA to pay first so I can control my FSA. This year I blew thru HSA thanks to AJ's surgery and my CT scan. I still need dental which is why Im holding out on my FSA $1500 (which isn't enough btw). I will split the procedures at the end of the year to have both policy terms pick up the cost. *sigh*
I believe the term is underinsured.
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| Posted 6/20/13 6:31 PM |
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Blazesyth
*yawn*
Member since 5/05 8129 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by Xelindrya
I went to the doctor at the end of last year and said "im losing FSA money, I need Rx for...." and gave him a list. Claritin and Benedryl for AJ that won't go bad. I got contact solution included in mine as well (already included OTC).
Yes, for the people that have 'extra' money at the end of the year; if you have your doctor write you a script for the OTC med, it will be covered. (But you have to submit a claim, you wont be able to use your debit card at the counter.)
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| Posted 6/20/13 7:16 PM |
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Re: Anyone have a Health Savings Account?
I just signed up for my benefits at work that kick in on 7/1 and this was an option. I decided to pass because it was a lot more out of my paycheck and *knock on wood* we don't go to the doctor all that much.
I also went to the main site to see things that may be covered (I have several wisdom teeth I've been putting off) and it didn't appear that things like this were.
Overall, my health insurance is finally great now and I am not paying half my paycheck for it anymore, so I don't care that much about this.
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| Posted 6/21/13 5:16 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by MorningCuppaCoffee
I just signed up for my benefits at work that kick in on 7/1 and this was an option. I decided to pass because it was a lot more out of my paycheck and *knock on wood* we don't go to the doctor all that much.
I also went to the main site to see things that may be covered (I have several wisdom teeth I've been putting off) and it didn't appear that things like this were.
Overall, my health insurance is finally great now and I am not paying half my paycheck for it anymore, so I don't care that much about this.
You're mixing up insurance coverage with HSA. The HSA money can be used for all medical expenses, it's just a savings account.......it is not insurance coverage. You contribute from your paycheck so that when you do encounter a medical expense (like having wisdom teeth pulled) you have the money set aside already to pay for it. And you decide how much you want to contribute from each paycheck, it's not a set amount. You can also adjust your contributions at any time.
When you have a high deductible insurance plan it's worth it to utilize the HSA because until you meet your deductible EVERY medical expense is OOP. I like having pre-tax money set aside so when I do get billed I already have the money saved to pay for it. It's just one less stress.
Message edited 6/21/2013 8:44:08 AM.
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| Posted 6/21/13 8:42 AM |
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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Re: Anyone have a Health Savings Account?
Posted by Blazesyth
Posted by Xelindrya
I went to the doctor at the end of last year and said "im losing FSA money, I need Rx for...." and gave him a list. Claritin and Benedryl for AJ that won't go bad. I got contact solution included in mine as well (already included OTC).
Yes, for the people that have 'extra' money at the end of the year; if you have your doctor write you a script for the OTC med, it will be covered. (But you have to submit a claim, you wont be able to use your debit card at the counter.)
good to know! thank you!
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| Posted 6/21/13 9:25 AM |
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DreamComeTrue
LIF Adolescent
Member since 1/11 541 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by Hofstra26
Posted by DreamComeTrue
I'm not sure if this is the same thing you are talking about but DH has money from his paycheck put into an account that we use for medical purposes only. We have a debit card for the account and we use it for office visits or at the pharmacy for prescriptions. I think the purpose for us is so we always have money aside.
Could be either an FSA or an HSA. You would have to check your insurance paperwork to be sure. If you have a high deductible insurance plan it's likely that it is an HSA.
DH said FSA.
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| Posted 6/21/13 10:40 PM |
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Re: Anyone have a Health Savings Account?
Posted by Hofstra26
Posted by MorningCuppaCoffee
I just signed up for my benefits at work that kick in on 7/1 and this was an option. I decided to pass because it was a lot more out of my paycheck and *knock on wood* we don't go to the doctor all that much.
I also went to the main site to see things that may be covered (I have several wisdom teeth I've been putting off) and it didn't appear that things like this were.
Overall, my health insurance is finally great now and I am not paying half my paycheck for it anymore, so I don't care that much about this.
You're mixing up insurance coverage with HSA. The HSA money can be used for all medical expenses, it's just a savings account.......it is not insurance coverage. You contribute from your paycheck so that when you do encounter a medical expense (like having wisdom teeth pulled) you have the money set aside already to pay for it. And you decide how much you want to contribute from each paycheck, it's not a set amount. You can also adjust your contributions at any time.
When you have a high deductible insurance plan it's worth it to utilize the HSA because until you meet your deductible EVERY medical expense is OOP. I like having pre-tax money set aside so when I do get billed I already have the money saved to pay for it. It's just one less stress.
I'm not mixing it up.
My insurance covers things like co-pays now (for the most part).
Especially with anyone affiliated with the place that I work.
The things that I would want it for (primarily dental) are not covered.
It was a lot more $$$ to me to take out of my paycheck.
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| Posted 6/22/13 7:01 AM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Anyone have a Health Savings Account?
Posted by MorningCuppaCoffee
Posted by Hofstra26
Posted by MorningCuppaCoffee
I just signed up for my benefits at work that kick in on 7/1 and this was an option. I decided to pass because it was a lot more out of my paycheck and *knock on wood* we don't go to the doctor all that much.
I also went to the main site to see things that may be covered (I have several wisdom teeth I've been putting off) and it didn't appear that things like this were.
Overall, my health insurance is finally great now and I am not paying half my paycheck for it anymore, so I don't care that much about this.
You're mixing up insurance coverage with HSA. The HSA money can be used for all medical expenses, it's just a savings account.......it is not insurance coverage. You contribute from your paycheck so that when you do encounter a medical expense (like having wisdom teeth pulled) you have the money set aside already to pay for it. And you decide how much you want to contribute from each paycheck, it's not a set amount. You can also adjust your contributions at any time.
When you have a high deductible insurance plan it's worth it to utilize the HSA because until you meet your deductible EVERY medical expense is OOP. I like having pre-tax money set aside so when I do get billed I already have the money saved to pay for it. It's just one less stress.
I'm not mixing it up.
My insurance covers things like co-pays now (for the most part).
Especially with anyone affiliated with the place that I work.
The things that I would want it for (primarily dental) are not covered.
It was a lot more $$$ to me to take out of my paycheck.
You can use your HSA to pay for all medical, dental, and vision expenses. Like I said, there is no set amount that comes out of your paycheck for the HSA, you determine your contribution. It's really meant to go along with a high deductible insurance plan which I'm assuming you don't have since you mentioned co-pays.
What You Can Use Your HSA For
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| Posted 6/22/13 8:14 AM |
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