Benefits Of Enrolling In A Health Savings Account

Posted on: June 1, 2009 by Matt

Originally uploaded by sudergal

During a recent discussion with my employer I was informed that due to our high deductibles that we have the option to enroll in a health savings account. After giving it some thought I opted to take advantage of setting up the account so that I may be a bit more encouraged to keep up on my proactive health checkups.

Currently my insurance coverage requires the first $2,000 to come out of pocket 100% as a deductible prior to any coverage. Once the deductible is met then the plan will cover 100% of expenses. Overall the HSA appears to be a pretty good deal and should help me take better care of myself (which I largely neglect due to cost). So far the benefits I am aware of include:

My employer will make a $50 deposit per month provided I have an automated contribution made.
My contributions are tax deductible up to $3,000.
Withdrawals from the account are tax free when used for eligible medical expenses.
The account does not appear to have a “use it or lose it” clause.
Eligible items include many services and products that I either currently use or have used in the past. So in addition to doctor visits I know there are a few other services I will take advantage of.

For the most part – I do not really see a downside other than a slightly smaller paycheck each pay period. The money does go into an account that will allow me to make doctor and dentist appointments (which my girlfriend regularly reminds me I need to do) without having to account for the cost in my checking account budget. I am fairly excited by the idea of having some money set aside specifically for my health and look forward to seeing how it all works out.

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