I find a new job with UPS. Benefits are better than average so I'm going to say 5K a year on this one, and that they pay the catastrophic for me. Benefits also start after three months though. And oh, shit. I got a kidney stone and have to go to the ER to take care of it. I racked up like 4500.00 in bills. Now, i've got a choice. I can pay my catastrophic premium of 1000.00 and let the catastrophic cover the rest. Or I can pay all 4500.00 out of my HSA. I decide to do that. the Catastrophic has a lifetime limit of 1 million and I want to make sure if I get cancer or gangrene or something fucked up I don't have to work. So that leaves me with 3410.00. I have no more health problems during the year though, and I'm back to my regular check-up and teeth cleanings of 195.00 a year. So I'm down to 3215.00. UPS kicks in though, and I get my 3750.00 from them which brings me up to 6965.00.
My next year at UPS, I go to the doctor once for a sore throat. So that's an extra 80.00 visit added to my normal 195.00. So I'm down to 6690.00. Add in my annual 5k and I'm up to 11,690.00. That's a pretty good little hedge.
I change jobs again. My insurance is about the same as UPS and kicks in after 30 days. That was almost a year ago so I'm going to assume the year is finished for purposes of this example (and because this is getting long). This year I've been to the doc. twice besides a checkup. That's 375.00. I spent another 300.00 on a chiropractor. So that's 675.00. I only get 4583.00 this year due to losing a month. That leaves me with 15,990.00 sitting in HSA.
Now, I've not bothered figuring interest. Or taking out costs of meds as I didn't really spend that much on meds. I think, once since I started working 7 years ago I got a prescription medication, so I'm going to call that even. Regardless, I'd be sitting with almost 16K in an account and should I start having medical problems I can use that, and if it gets near the bottom, I can use my catastrophic insurance, say if I get cancer or have a heart attack or something like that. This ignores my wife's income and insurance. My point though is this: if people have it, they have their 20s which are typically low health-care expenditures to build up a cushion so that as later in life problems get more serious/expensive/likely, they are better prepared to handle it.
Now, I don't know Ian's finances or medical expenses. But his major complaint seems to be choice. And HSA would undeniably give him more choice than he currently has, at no additional expense to himself or to anyone else. It's just removing some of the blocks on money that's already there, freeing it up to go where it is treated best, as defined by Ian instead of a pencil-pusher in the gov't or at some insurance company.
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My next year at UPS, I go to the doctor once for a sore throat. So that's an extra 80.00 visit added to my normal 195.00. So I'm down to 6690.00. Add in my annual 5k and I'm up to 11,690.00. That's a pretty good little hedge.
I change jobs again. My insurance is about the same as UPS and kicks in after 30 days. That was almost a year ago so I'm going to assume the year is finished for purposes of this example (and because this is getting long). This year I've been to the doc. twice besides a checkup. That's 375.00. I spent another 300.00 on a chiropractor. So that's 675.00. I only get 4583.00 this year due to losing a month. That leaves me with 15,990.00 sitting in HSA.
Now, I've not bothered figuring interest. Or taking out costs of meds as I didn't really spend that much on meds. I think, once since I started working 7 years ago I got a prescription medication, so I'm going to call that even. Regardless, I'd be sitting with almost 16K in an account and should I start having medical problems I can use that, and if it gets near the bottom, I can use my catastrophic insurance, say if I get cancer or have a heart attack or something like that. This ignores my wife's income and insurance. My point though is this: if people have it, they have their 20s which are typically low health-care expenditures to build up a cushion so that as later in life problems get more serious/expensive/likely, they are better prepared to handle it.
Now, I don't know Ian's finances or medical expenses. But his major complaint seems to be choice. And HSA would undeniably give him more choice than he currently has, at no additional expense to himself or to anyone else. It's just removing some of the blocks on money that's already there, freeing it up to go where it is treated best, as defined by Ian instead of a pencil-pusher in the gov't or at some insurance company.