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8anned
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Maybe you can tell us what HSA stands for in laymans terms?:)sphss

Health Savings Account?
 

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8anned
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In easy terms, it is a great way to use pre-tax income for medical expenses but make sure that you use it, otherwise you forfeit it which doesn't save you anything at all. Do you see yourself having a lot of medical expenes in the next year? The good thing about them is that you should be able to drop money into it at anytime, either by lump sum or a specific amount per paycheck. If you see yourself needing surgery or something with a high copay, then drop some cash in for it. The best way is to ask your HR department what kind of cafeteria plans they have set up for you.
 

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Swollen Member
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We tried it for a year, 3 years ago. Less than 30 employees, some professional, most are laborers. Not one person in the company from top to bottom put one dime into it. Damifiknow, but that's what happened. Seems it was viewed as a positive for the company and a negative for the employees and thus our result no matter the level of education of the employee. We are Blue Cross Blue Shield now and everyones happy with that. I don't think employees want anything to do with health care other than to use it, not manage their own account.
 

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In easy terms, it is a great way to use pre-tax income for medical expenses but make sure that you use it, otherwise you forfeit it which doesn't save you anything at all. Do you see yourself having a lot of medical expenes in the next year? The good thing about them is that you should be able to drop money into it at anytime, either by lump sum or a specific amount per paycheck. If you see yourself needing surgery or something with a high copay, then drop some cash in for it. The best way is to ask your HR department what kind of cafeteria plans they have set up for you.
That is not true! The HSA rolls over year after year! It can actually mirror the benefit of an IRA once you hit retirement age! There is a different one that you loose your money each year! I think it is labled a Health Maintenence Account or something. We put an HSA plan in with BC & BS, and saved a ton of money. We then divided the savings to the company up between families, and singles, and gave it to the employee's to stop just paying it out in premiums. Then the employee's can add to the amount up to Federal ceiling limits, each year, building up an account that can be used for years or the rest of thier health care needs for life! Along with that the money can be used for braces, dental care, and cleanings!! This has been a huge positive for our company, and I would highly recommend looking into it. The account mangement is with Melon Bank when you use BC & BS, and once its opened, it is easy. I would strongly recommend talking to an agent to understand them completely. Also I know there are differences of the acct management per what carrier you use, so that might be an issue to consider.
 

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two different things are being described here . The use it or lose it is a section 125 plan. An HSA is different.

An HSA is typicaly used with a "high deductible" insurance coverage. Typically you contribute to a "savings account" and get to keep it if its unused.

So if your medical plan leaves you with a large co-pays and out of pocket expenses (mine was $2,500 each year for the last two years :|err) and you can reasonably estimate them, then out of pocket expenses you pay are deductible.

Lots of options.

Section 125 work best for purchasing additional insurance coverage over what the employer provides (i.e. dependants, spouse, etc.) mainly because it is easy to estimate the amount and the deductibility of it.
 

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I've had mine for a year, the company I work for contributes what they would have paid for their part of a premium, and I match it . . . so far so good.
 

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E-7 Sheepdog (ret)
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Long ago had a 125 plan, good for "expected" expenses, like regular prescriptions (like diabetic meds for example), glasses, etc.

Not been "good for me" in a very long time as I (and family) am generally in good health, without regular expenses.
 

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huh?
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Just used mine today to pay for having my wisdom teeth removed. My dental only covered a part of the cost so I used my HSA to pay for the rest. Since the company I work for (used to) make yearly contributions to the account, it worked out well for me.

It's nice having the money set aside for dental/medical expenses, and it goes into the HSA pre-tax.

Rob
 

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I use the Flex spending account which is the pre tax account that you loose if you do not spend. I use it for my daughters braces, contacts and put in the extra foe meds and copay. Like has been said this type is good for known expenses. HSA works good with insurance premiums to help control the cost, basically putting it back on you. Works best for higer income people.
 
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