health insurance costs
Question
Is a HSA right for me?
I am starting school in the fall and am wanting to get health insurance. I believe preventative care is very important. I am 23 years old and am very healthy. Never had an surgery, never been hospitalized at all. My family doesn't have any history of health issues either. I was hoping my fiance's health insurance could cover me as a domestic partner since we have lived together for 3 years, but it doesn't. And we don't plan on getting married until after school since I get more aid that way. I really just want to be able to get my yearly paps and birth control costs cut. I would also like to be able to go in for regular check ups with a doctor since I have never done this. I prefer to not go to Planned Parenthood anymore. I have had a few issues with them and I just feel it's time for me to get a regular OB/GYN to be close with for when I want kids later in life. I looked at Anthem's plans for individuals. I am NOT employed and my school does NOT offer health insurance for students. The HSA would cost me around $100 including dental care. Would this be good for me? I'm not sure how it works. I think when your employed your employer provides some money for the account, but this wouldn't be the case. So would it be all my funding? When I had health insurance through employers I only used it for Planned Parenthood and birth control. That was it. I feel my weekly premium was a waste. I heard HSA's cover a lot of over the counter medicines. Can anyone give me advice? Thanks.
5 months ago - 1 answers
Best Answer
Chosen by Asker
An HSA is designed as a tax savings vehicle for people who don't use a lot of medical care. You must have an HDHP (high deductible health plan) in conjunction with an HSA. Your health plan would need to have at least a $1,150 deductible, so you would pay $100 a month, plus the deductible, before any of your claims are covered. So, you'll pay $100 a month for a plan that allows you to make after-tax deferrals into an HSA, so how much will you be able to deposit each month? You're not employed, so you won't have an employer match, so the only money going into the account will be what you put in there. Will you be able to put anything in? (You can deposit up to $3000 this year) That money (what you deposit) will be used to pay your out of pocket costs--deductible, which is at least $1150, plus prescription coinsurance, copays, etc. You will have to come up with at least $2350 a year (your monthly premiums plus your deductible). Another thing you need to look at is bank fees. A big complaint from HSA participants has been that, because they can only contribute a small amount each month, their accounts are being eaten up by monthly services fees charged by the bank. I know you want to get settled with a doctor, but you're probably better off putting the money in a savings account--there are online accounts with companies like ING and HSBC that have higher yields than a brick and mortar bank, and you have immediate access to the money via a debit card. Or look at a non-HSA plan--look around. At your age and health history, you should be able to find something reasonable. Take advantage of community health clinics as well--most sizeable areas have them, and they're based on income. Use Planned Parenthood for birth control if necessary, or again, see if there's a community health clinic available. The one big advantage to having some kind of plan is so you won't be faced with a pre-existing condition issue once you get married and go on your husband's insurance. Good luck!
by katiesquilts
5 months ago
Asker's Rating: 