We just offered an HSA (Health Savings Account) at our company. It features a big deductible and the option of placing money in a tax deferred account to pay your large deductibles with.

I will save about $1700 per year on my weekly cost over the PPO with a smaller deductible. The $5900 I can put in the HSA will save me another $2300 a year in taxes. The company will add another $360 a year for a total savings of $4360 per year. Tax free interest can also be earned on the account

I have to absorb another $5500 maximum ($10,000 total for family coverage) out of pocket before the insurance kicks in. It could be as high as an additional $8500 on a large single claim. Against the guaranteed ANNUAL savings of $4360 this seems like a good risk for me. The HSA account balance accumulates from year to year, so after the first year I should have enough to cover any additional costs in the deductable.

There are some complicating factors if you have expensive maintenance drugs, or a bunch of small children but it may be worthwhile even then.

I can spend the money on legitimate health expenses and deductibles, even if they would not have been covered under the full PPO plan- dental, eyeglasses, chiropractors, etc.

It is a great plan and makes a great step to restoring market accountability to health care. The difficulty is in the marginal income brackets that have a hard time putting enough money aside.

It is one of the better health care options made available for the consumers.

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