Tuesday, September 4, 2007

What's An HSA? Questions About Money

My Frugal Friday post generated a question about the mysterious "HSA". That stands for "Health Savings Account". The money invested in it grows tax free. We actually have insurance that includes the HSA. We have a very high deductible (more than $5,000). The insurance company negotiates lower rates on some things, like doctor visits and some medicines. After the deductible it is 100% coverage, unlike a similar type of insurance we used to have that was an 80/20 plan.

And (hold your breath here...) there is no maternity benefit. We've paid out of pocket for our three girls. Yep, they're bought and paid for. Signed, sealed, and
after much labordelivered. We were told about a clinic offered by a local hospital. The price they charge included all pre-natal visits, ultrasounds, blood work, delivery, etc. and a two night stay in the hospital, although I usually only stay one night. The care has always been excellent and I've really liked my doctors (Residents at this hospital). If there were to be any complications they negotiate a discount with the hospital for you, although we've never needed this, Praise God!

This works well for us at this point in our lives. It costs almost as much as our mortgage to self-insure but it is definitely worth it. We set aside money each month for medical costs. We can pay for dental and eye-doctor visits (which are not covered by our insurance either) out of the HSA, as well. As I said before, we're a generally healthy family so some months we don't use that money and it just saves up for the times we do.

This ends our commercial for HSA/High Deductible Insurance. Back to your regularly scheduled blogging. Or whatever.

1 comment:

Anonymous said...

Thanks for the additional info! :)

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