HSA Health Savings Account for high-deductible health insurance.
Thanks very much to ObamaCare which basically eliminated my small business health insurance plan. As of my renewal date in September 2014 I had to cancel my business health care plan resulting in my wife and I being introduced to individual health insurance from the same company.
So the new individual plans all have deductibles you have to meet before they pay out. The deductible we chose was 6000 dollars for our family. Oh yes, and the cost of the insurance premium went up 35 percent.
So we now heave a health savings account set up at our credit union were we can put up to 6550 per year in to cover the deductibles on our health insurance. This set aside 6550 per year is nontaxable income.
So we have a debit card for this account which we can use at the pharmacy and doctors office. It won't take long to reach the deductible because my wife and I both use tier 3 drugs which cost a fortune.
So if you have a high-deductible health insurance plan you may want to consult with your tax adviser about an HSA.
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Comments
Lemark wrote on October 17, 2014, 4:51 PM
This sound very complicated. I am sorry that the change was not for the better. I am afraid I am not familiar with the details of your health insurance system.
Feisty56 wrote on October 17, 2014, 5:00 PM
My fella is an independent business owner. He doesn't discuss details with me, but I do know he has opened an HSA, which I assume is for the same use as that of you and your wife. My hopes were that the Affordable Care Act would simplify health insurance for us everyday folks and at least keep insurance rates where they were, rather than higher. I may be the only one who thinks so, but a single payer plan would have been preferable to the current system, but the president took that off the table early into negotiations with Congress.
Linda-From-US wrote on October 17, 2014, 9:15 PM
Insurance can be so complicated. I have been taking care of my mom's. She has had tons of tests and one stay in the hospital. I don't think the bills are ever going to stop. Luckily, she has met her deductibles for this year. We are hoping she gets all the major testing in before another year begins.
Ldyjarhead wrote on October 18, 2014, 7:31 AM
Health care in this country is pretty scary. I know the whole system needs to be revamped to make basic care affordable for the masses, but I don't think the new system does anything of the sort.
Scorpie wrote on October 18, 2014, 8:17 AM
All I know is it punished plenty of working people like me. Between increased premiums and deductible my health spending will triple this coming year.
TheTalker wrote on October 18, 2014, 5:44 PM
I have patients who use their health savings account. They like to have this option, and since the deductables have gone up so much (along with premiums) it helps.
Ruby3881 wrote on October 18, 2014, 6:04 PM
I still shake my head at the American health care system, and how many people were so opposed to universal health care. In Canada I have my health care number, and if I need medical services I just make an appointment or head over to the hospital. It costs me nothing because we're low income. And a good portion of our prescription drug costs are covered too. In some cases, they are completely free. Too many Americans in a similar situation are having to choose between health care costs and other monthly expenses...
BarbRad wrote on October 19, 2014, 1:47 AM
There's a reason they had to pass this the "unaffordable care act" on Christmas Eve while the public was not paying attention and why they had to bribe some Congressmen with earmarks and promises to get them to vote for it.
OldRoadsOnceTraveled wrote on October 21, 2014, 1:38 AM
I can't afford dental insurance for myself, but yet I am required to buy dental coverage for my minor children--despite the fact that I don't have children.
Scorpie wrote on October 21, 2014, 11:54 AM
That's a good trick. I just love mandates that force you to spend money. Whoever invented insurance has to be the biggest crook of all time.
gidget wrote on October 21, 2014, 2:46 PM
Those HSAs are wonderful to have
paigea wrote on October 28, 2014, 3:26 PM
I am sorry this has happened to you and to many others. I need to pay attention to our own health care situaltion. We have a good (not perfect) system and I want to make sure we keep it!
Jlbowden wrote on November 26, 2014, 5:30 PM
Scorpie very good article summary on HSA savings accounts. Actually one year I found myself opening up a HSA account at a bank called Optum health bank. There are a few of these located across the country and as you mentioned, can be opened up at your local credit union. I have to agree with you that the deductible for a family is outrageously high. You almost wonder if it's worth all of that. But when you think about it, you cannot put any price on safe guarding you and the family's health.
scheng1 wrote on December 6, 2014, 1:23 AM
Obamacare is not sustainable. Sooner or later, they will have to reduce the coverage.