About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 593 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 7 comments… read them below or add one }

Shawanda @ You Have More Than You Think

Thanks for pointing out one of the real – but rarely mentioned – aspects of the health savings account. Yeah, you can invest your contributions in stocks and mutual funds, but does that really make sense? How long do you thing you’ll go before there’s a serious likelihood you’ll incur a major medical expense? I can accept the risk of taking on more of my health care expenses. But I can’t accept the risk that I won’t have enough money to pay for medical expenses in the event I have to undergo an expensive procedure or treatment.

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Modest Money

This sounds like a good option if you aren’t likely to incur any major medical expenses. Still it seems it’s a bit too risky if you do happen to need something expensive. I’m glad I’m Canadian and don’t need to make this kind of decision. I’d probably go with something like this and then later regret it.

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Remy @MLISunderstanding

I switched over to a HDHP during last winter’s open enrollment, and I’ve been putting the amount I *would* have paid for premiums, plus some, into the HSA. And my employer contributes a small amount every paycheck, too! I have a chronic illness that is manageable with (thankfully inexpensive) daily medication, so those costs are paid with tax-free funds. I will have the funds necessary to pay my full deductible soon (by the end of the year) in case of catastrophic illness or injury, and after that the extra I save will go toward a planned medical expense in the next couple of years. I’m very happy with my HDHP!

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MoneySmartGuides

I love having an HSA. I rarely go to the doctor so my contributions every month go towards savings. When I do need money for medical, I pay out of pocket and let the HSA money continue to grow. There is no limit on when you can use the money in your HSA, so I’m going to let it grow tax-free until I have medical expenses later and then use it then, tax-free.

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Financial Planner Irvine

It’s good to have a health savings accounts so that you’ll have something to use in case of health related financial emergencies. Just make sure that you have everything else provided for because using this would mean your money will surely be tied.

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Zach

I have an HSA account and high-deductible insurance for the first time. I bought an insurance plan that covered me 100% after I hit my deductible. After a year of contributing (along with my employer) into my HSA, I had enough in my HSA to cover my annual deductible if I ever needed it.

Turns out, I had to get knee surgery last week. My HSA will cover the deductible… and my insurance will pick up the rest. And since my HSA contributions come directly out of my paycheck, I feel like I didn’t pay a dime for this surgery.

The best part: if I incur any more medical costs, anything as small as a cold to as big as a heart transplant, before the end of this calendar year, it’s covered 100% by my insurance company… and all the while, I can start building my HSA back up for next year.

I think I can get used to this HSA thing.

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Frollo Moran

Health Savings Accounts were created in 2003 to help you save for future medical expenses on a tax-free basis. That means you don’t have to pay taxes on the money you contribute to an HSA, you get to deduct the amounts from your taxable income when you file your income tax return.

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