- Most HSA compatible policies pay 100% after the deductible has been met. This means that there are no confusing percentages or internal limits on what's covered or what's not covered. It's an easy plan to keep track of. I have a $xxxx deductible and after that I'm covered up to the lifetime maximum. Easy!
- Because HSA compatible policies have a higher deductible and typically don't pay anything until the deductible is met, the rates are much lower than plans with copays.
- Monies placed into HSA accounts are highly tax-advantaged; All deposits are deductible and all withdrawals used for eligible medical expenses are not taxable. Growth in the HSA account is also not subject to taxation as long as it is used for medical expenses. How can you beat that?!?
- Money in the HSA account rolls over from year to year. Many people with an HSA compatible plan save enough in the HSA account to fund a deductible should the health insurance policy ever need to be used.
- HSA's put people in charge of their medical expenses. Rarely do patients shop for the best price or negotiate with their doctors when having a procedure... Why? Honestly, I don't know. You negotiate when you buy a car, house, and used sweaters at garage sales... why should your health care be any different. Doctors are more than happy to adjust fees for services if you ask. This brings the cost of medical care down which on the larger picture could result in better health insurance rates.
- HSA compatible health insurance policies only have one family deductible. Any or everyone can meet the deductible unlike traditional health insurance where each member of the family has an individual deductible.
As you can see, I'm a huge fan of HSA's and you should be too. Anyone that is paying for their own medical insurance should investigate the benefits and the dollars that could be saved by purchasing an HSA compatible health insurance policy and funding an HSA.
