Mid-Year Update on My Health Savings Account (HSA)-How is it working?

The year is half way over, so I thought it would be a good time to take a look at my Health Savings Account (HSA), which is coupled with a high-deductible insurance plan. I switched from an HMO plan to the HSA plan with a high deductible at the beginning of this year, 2008. It has been a little over 6 months, and overall I am quite satisfied, even pleased. My two small children started off January/February with several doctor’s visits each, so I was a little worried in the beginning. I also did not get the payroll deduction linked to my HSA bank account before the beginning of the year, so I actually missed my 1st two deductions, and it just went into my paycheck. Here are the numbers for the year so far:

Amount deposited into HSA from payroll deductions: Appx. $2250

Amount spent from HSA account and applied to deductible: Appx. $750

Amount currently in HSA account: Appx. $1500

If you go back and read my earlier post regarding my HSA account, I am saving about $200 a month in premiums, and I previously put about $1000 in a flexible spending account (FSA). Adding the two together allowed me to put appx. $3500 into the account without any additional expenses than last year. I increased my HSA witholdings about another $83/mo., in order to put in $4500 for the year (although I missed the 1st 2 deductions for the year, so it will end up being a little over $4000.) I don’t necessarily think the second half of the year will go as well as the 1st, but to have $1500 saved after 6 months is pretty good as far as I am concerned. Some of the benefits of a HSA account can be found in my first article as well.

A few notes from being in the plan so far:

• I have not had any problems with paperwork or claims, a problem I have heard can happen, even a few of my fellow employees who were in the plan previously mentioned having some issues.
• The price of doctor’s visits through my insurer, which are charged to me at a negotiated rate, are not as high as I would have thought. Most have averaged $75 to $100. When you subtract out the $20 copay I don’t pay anymore, this drops to $55 to $80 per visit, which is quite a bit lower than I would have guessed.
• The cost of prescriptions can vary widely, and I have paid for a couple for the kids that were over $100. But many generics cost $5, and you can do a little research and use the $4 prescription programs at Walmart or Target to find very cheap prices on some prescriptions.
• Educating yourself and talking to your doctor can help you save money. Twice, after a little research, we have requested a generic equivalent from the doctor, and it saved us $$.

So far, after 6 months, I really have no complaints about the HSA plan I am in. I do believe, in the long run, it will allow us to save money and make our own choices regarding our family’s health.

Note: All HSA plans will likely be slightly different, so you will need to research your company’s or the insurance company’s HSA plan details to see the exact plan details and how it may work for you.

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