Is there any worth to an HSA if you have very strong health insurance?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Bob Sacamano
Posts: 365
Joined: Tue Jun 14, 2016 8:54 pm

Is there any worth to an HSA if you have very strong health insurance?

Post by Bob Sacamano » Thu Nov 07, 2019 7:18 pm

i am on my wife's plan. the cost is relatively affordable (~3,500 for both of us annually).

there's $0 deductible and $30 co-pays for typical visits.

other coverage is solid as well.

to me, it makes less sense in this instance to have an HSA and instead i should focus on other means of investment (401K, IRA, etc.).

your thoughts on the matter appreciated. thank you.

Lalamimi
Posts: 96
Joined: Mon Jun 24, 2019 4:22 pm

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by Lalamimi » Thu Nov 07, 2019 7:21 pm

If it does not have a high deductible, you can't have an HSA.

bloom2708
Posts: 6891
Joined: Wed Apr 02, 2014 2:08 pm
Location: Fargo, ND

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by bloom2708 » Thu Nov 07, 2019 7:22 pm

Your plan must be a HDHP (high deductible health plan) to qualify for HSA contributions.

The benefits are tax free in, tax free growth and tax free out if used for qualified medical expenses.

Another place to shelter $7k for a family.
"People want confirmation, not advice" Unknown | "We are here to provoke thoughtfulness, not agree with you" Unknown | Four words. Whole food, plant based. Bing it.

Planner01
Posts: 78
Joined: Mon Dec 26, 2016 2:44 pm

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by Planner01 » Fri Nov 08, 2019 7:11 am

I rarely have any medical expenses and when I do I pay out of pocket. I use the HSA as a supplement to my retirement investments. It goes in pre-tax, it grows tax free. If you wait until you retire to withdraw, the money doesn’t have to be used for only medical expenses. What’s not to like? With the 401k the money is only tax deferred.

mptfan
Posts: 5532
Joined: Mon Mar 05, 2007 9:58 am

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by mptfan » Fri Nov 08, 2019 7:19 am

Lalamimi wrote:
Thu Nov 07, 2019 7:21 pm
If it does not have a high deductible, you can't have an HSA.
Exactly. It's a moot point.

bling
Posts: 360
Joined: Sat Jan 21, 2012 12:49 pm

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by bling » Fri Nov 08, 2019 7:55 am

run the math.

for my previous jobs, i didn't have an option for an HSA, but with my current job, an HSA option opened up and after running the calculations, i would basically break even compared to the others plans if i hit the out-of-pocket maximum of the HSA plan. anything less, i win. plus, now i have an extra retirement account.

the only downside is that you "feel" every doctor visit because the deductibles are so high now. but with the other plans you don't feel anything because it was already taken out of your pay check before it even hit your bank account.

User avatar
Brianmcg321
Posts: 264
Joined: Mon Jul 15, 2019 8:23 am

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by Brianmcg321 » Fri Nov 08, 2019 8:42 am

You're correct. The government agrees with you as well.
Rules to investing: | 1. Don't lose money. | 2. Don't forget rule number 1.

Clarice
Posts: 182
Joined: Thu Jun 14, 2018 3:26 pm
Location: Orlando FL

Re: Is there any worth to an HSA if you have very strong health insurance?

Post by Clarice » Fri Nov 08, 2019 12:04 pm

Ask yourself if you really need that great plan. If you don’t, then consider the HDHP + HSA. I don’t need a great plan so I max the HSA.

Post Reply