Health Savings Accounts (HSAs)
Hi All, I know that many of us struggle with health care and finances, so I thought this report on studies of HSAs would be interesting to some of us. It's here, in full. All claims are backed up with references to studies. The site is partisan, but I think that the studies have merit. If this is a major consideration for you, I would go directly to the website linked above. It has links to external sources that provide a lot more info. Some highlights, and my experience (sorry these were all CAPS and I don't have time to change them. No offense intended!) --HSAs LIKELY TO INCREASE THE NUMBER OF UNINSURED --LOW- AND MIDDLE-INCOME AMERICANS GAIN LITTLE OR NO TAX SAVINGS FROM HSAs --HSA USERS PAY MORE OUT-OF-POCKET COSTS --HSAs COULD COST TAXPAYERS $41 BILLION OVER TEN YEARS --HSA USERS MORE LIKELY TO AVOID, SKIP, OR DELAY HEALTH CARE BECAUSE OF COSTS (I have been guilty of this one) --HSA EXPERIMENTS HAVE FAILED IN OTHER COUNTRIES --HSAs WILL UNDERMINE EMPLOYER-BASED HEALTH CARE SYSTEM --HSAs TO ENRICH FINANCIAL SERVICES INDUSTRY I have been using a HSA for the last 3 years with lukewarm success. I actually managed to spend the money and not lose it, which was good. But, I don't think it really reduced my taxes (I make enough to pay, but don't have huge costs that would lead to tax savings). They are a pain, because you have to save all the receipts, file claims, put dependents on separate accounts (but all use the same cough syrup!), etc. etc. I am still undecided and enrolled for a modest amount next year (I wear glasses and take prescription meds. This pulls money out of my salary, so it does help me budget for the things I need). I will take a closer look at my taxes this year and see if I really saved any money. If not, I would be better off to pull the amount from my bank each paycheck and put it into a high-interest savings account. Please feel free to share your experience with HSAs, and whether you continue to use them or not. Thanks!