Are HSA (or whatever they are called now) worth it?

[bisous]

I have found using an HSA to be THE BIGGEST pain ever. Is it really worth the tax savings? FWIW, we get A LOT of money in our tax rebate. I find the paperwork hassle to be extremely annoying. Our benefits place basically told us that they will require documentation for any costs incurred at the dentist at all.

Anyone have any analysis on what kind of savings the HSA can really provide?

Thank you!

[Jen841]

All depends on you vendor and plan rules. I have Benefit Wallet and they have been good to work with. I can use my credit card to pay for expenses and can upload documentation.

Not using the money is an excellent source of retirement savings I am hearing more and more about.

[o_mom]

I have found using an HSA to be THE BIGGEST pain ever. Is it really worth the tax savings? FWIW, we get A LOT of money in our tax rebate. I find the paperwork hassle to be extremely annoying. Our benefits place basically told us that they will require documentation for any costs incurred at the dentist at all.

Anyone have any analysis on what kind of savings the HSA can really provide?

Thank you!

Is it an FSA or an HSA?

Our HSA requires no paperwork. We deposit and withdrawal money with no paperwork. We have to keep documentation in case of an audit, but that is separate.

When we had an FSA we had to submit paperwork for everything.

A rough estimate of the benefit is to take your tax bracket and multiply it by the amount you are putting in. So, if you are in the 25% tax bracket and put in $4000, you save $1000.

[egoldber]

Some plans can link insurance claims to your account. So for medical expenses (doctor co-pays, prescription co-pays, deductibles, etc.) I don't have to file any paperwork to get a reimbursement. I do have to file for dental and vision claims. But I think all these plans will require documentation.

I can also submit expenses on-line if I have scanned them to a PDF.

[basil]

Ours is a huge pain in the neck. We aren't doing it anymore. We don't have a lot of OOP medical expenses, so we were just doing $500 a year or something. I've been fighting with them for months that the $136 I paid for to the hospital for the delivery of my daughter was actually medical claim. I'm not sure if they think I spent it in the gift shop??? Sigh.

[bisous]

Hmm. I don't know if it is an HSA or an FSA. I know two years ago we put in $1000 and yes, they challenged us on the money we charged for the delivery of my daugher!!! And last year I THOUGHT I signed up and somehow did not... We have fantastic coverage but with four little kids and one with an expensive chronic illness, I still pay often for medical services. For us, it is mostly pharma copays ($10 to $25 per month) and doctor visits ($20) but it adds up! We've also been to the ER already this year to the tune of $100. Still, I think we'd probably put in $500 or less since we done having kids.

[JanBaby]

FSA's and HSA's are different. You can only contribute to an HSA if you have a high deductible health care plan (also called consumer driven or HSA plan). HSAs are great because in addition to the pre-tax savings, they have more flexibility than an FSA. You can roll over the contributions, earn interest and it's portable if you leave the company. FSA's are more strictly regulated (typically use it or lose it plans although there is a new plan option that allows employees to carry over $500 if your company has it in place). Oftentimes employers contribute to an HSA account to drive participation. At my company, we have a debit card for our FSA's so it's very easy to use. FSA vendors are different - some require proof for all reimbursements and others have a true up process in place that effectively validates the purchases through other means.

[bisous]

FSA's and HSA's are different. You can only contribute to an HSA if you have a high deductible health care plan (also called consumer driven or HSA plan). HSAs are great because in addition to the pre-tax savings, they have more flexibility than an FSA. You can roll over the contributions, earn interest and it's portable if you leave the company. FSA's are more strictly regulated (typically use it or lose it plans although there is a new plan option that allows employees to carry over $500 if your company has it in place). Oftentimes employers contribute to an HSA account to drive participation. At my company, we have a debit card for our FSA's so it's very easy to use. FSA vendors are different - some require proof for all reimbursements and others have a true up process in place that effectively validates the purchases through other means.

This is super helpful. I think we may have inadvertently signed up for an HSA last year and we were NOT eligible because we don't have a high deductible plan. That would explain why we didn't end up with any money taken out--even though we thought we set it up that way!

I must want an FSA. But although we have a debit card, we are audited all the time making it very very inconvenient.

[echoesofspring]

Our HSA is just a hsa account at our local bank with a debit card and checks. We intended to do a fancier one with investment options and have yet to get around to it. We keep good records on the off chance we could get audited, but there is no day to day accountability, if I think something is a medical expense I write a check for it. It was a lifesaver when we had our kids as we had been contributing every year but not using the money so we had a huge pool from which to pull. Being self employed it was the only way we could get reasonable insurance in the last few years. It's been a good deal for us, but I don't know that it would be a good deal for someone with a lot of medical issues, and should try to not have a high deductible plan.

[AnnieW625]

I haven't had many issues with ours, we turn in receipts and have a pretty liberal list of what it can be used for, but my last turn in I turned in $250 worth of stuff and only got $125 back and said I already submitted two other claims for the same stuff, and I have $368 left in funds so enough to cover so I need to call them and get that mess sorted out. If we didn't currently need it for tax reasons and as a little extra insurance (we contribute $1800 a year) because we have a PPO then I probably wouldn't bother with it. I didn't have it with Kaiser because Kaiser covered everything and IMHO it wasn't the worth the hassle to submit the $5 prescription, and $10 co pays, but when you have a PPO IMHO it makes a little more sense and is less cumbersome because you are turning in bigger receipts than RXs and co pays. We also have 3 people in full time glasses and DH also wears contacts so about 1/3 to 1/2 is spent every year on vision care.