health savings accounts (hsa)

Time to reconsider Health Savings Accounts. In the October 29, 2007 issue of Newsweek, there was an article outlining the advantages of an HSA.

The Newsweek article suggests finding a good HSA provider that offers an investment account and not just a bank savings account, which is fine if you believe that you can out-guess the market.

  • High Deductible Health Plan (HDHP)
  • minimum deductible must be at least $1,050 (self-only coverage) – 2006
  • annual out-of-pocket (including deductibles and co-pays) for 2005 cannot exceed $5,250 (self-only coverage) – 2006

Save all the receipts to submit later to get the money back. Sounds like an administrative chore. Is it worth the effort for us, given that we are in good health and rarely incur any medical costs, even for over the counter medication. We usually don’t replace eyeglasses or contacts very often, but perhaps we should.

As someone pointed out recently, “no body expects car insurance to cover routine maintenance. Why would you expect your health insurance to cover routine healthcare costs?”

Who can benefit and how?

HSA in California for individuals

Aetna, Inc.
Blue Cross of California – *Individual PPO 3500 (HSA Compatible) Plan
Blue Shield of California
John Alden Insurance
Kaiser Foundation Health Plan
Lumenos, Inc.
Nationwide Health Plans

Learn more…

Newsweek article October 29, 2007

U.S. Treasury – Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003 and are designed to help individuals save for …

U.S. Treasury – HSA Frequently Asked Questions
A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for …

Health savings account – Wikipedia, the free encyclopedia
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible … – Newsweek suggests
HSA Insider – The Nation’s Leading Authority on Health Savings …
The HSA Insider is the Internet’s leading destination for information related to Health Savings Accounts. Inside the Insider:. HSAs for Individuals …