Comments on: Will an HSA save you money? http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/ Editors from FSB magazine answer your pressing small-business questions. Thu, 05 Nov 2009 16:07:19 +0000 http://wordpress.com/ hourly 1 By: Rick K http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1990 Rick K Wed, 07 Oct 2009 22:12:28 +0000 http://askfsb.wordpress.com/?p=847#comment-1990 Chump change? I don't think so buddy. I have an HSA plan with a $2500 yearly deductible that my company fully pays for (funds my account). That means every year I don't have a mjor medical event I net $2500 of income I would otherwise never have seen. Do that for 10 years and it's $25,000 of "free money" without including the interest. Still sound like chump change to you? Chump change? I don't think so buddy. I have an HSA plan with a $2500 yearly deductible that my company fully pays for (funds my account). That means every year I don't have a mjor medical event I net $2500 of income I would otherwise never have seen. Do that for 10 years and it's $25,000 of "free money" without including the interest. Still sound like chump change to you?

]]> By: Dave,La Verne,Ca http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1494 Dave,La Verne,Ca Sat, 07 Feb 2009 16:26:19 +0000 http://askfsb.wordpress.com/?p=847#comment-1494 Good job Pres Bush for pushing this through, however, the state of Calif. are not on board with this type of plan. They are requiring you to report all spending used by the the HSA account. That took a big potential return from me and my family.Big deal anyways! I would not of gotten my returns, being the state of Calif holding the returns. So, the potenial savings is reduced for us Calif. resdents. Good job Pres Bush for pushing this through, however, the state of Calif. are not on board with this type of plan. They are requiring you to report all spending used by the the HSA account. That took a big potential return from me and my family.Big deal anyways! I would not of gotten my returns, being the state of Calif holding the returns. So, the potenial savings is reduced for us Calif. resdents.

]]> By: Michael, WLB, NJ http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1489 Michael, WLB, NJ Fri, 06 Feb 2009 21:03:44 +0000 http://askfsb.wordpress.com/?p=847#comment-1489 Two River Community Bank Middletwon, NJ offers HSA no fees, interest bearing. Two River Community Bank Middletwon, NJ offers HSA no fees, interest bearing.

]]> By: Todd, Elma, NY http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1488 Todd, Elma, NY Fri, 06 Feb 2009 15:55:50 +0000 http://askfsb.wordpress.com/?p=847#comment-1488 I have an HSA through Mertain Health the largest independently owned TPA for Health benefits. I also receive very high discounts for my in network charges. I have fouond that by having a healthy lifestyle this can save me alot of money. HSA dollars after retirement can be used just like and IRA. I am currently 27 and feel this is just another way to save money for retirement and protect my healthcare future I have an HSA through Mertain Health the largest independently owned TPA for Health benefits. I also receive very high discounts for my in network charges. I have fouond that by having a healthy lifestyle this can save me alot of money. HSA dollars after retirement can be used just like and IRA. I am currently 27 and feel this is just another way to save money for retirement and protect my healthcare future

]]> By: steve johnson bloomington mn http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1487 steve johnson bloomington mn Fri, 06 Feb 2009 15:00:04 +0000 http://askfsb.wordpress.com/?p=847#comment-1487 Check out Patelco.com. They pay 5.12 percent interest on the HSA accounts. this is a credit union. It is 5.12 as of February 09. - no risk Check out Patelco.com. They pay 5.12 percent interest on the HSA accounts. this is a credit union. It is 5.12 as of February 09. – no risk

]]> By: JB Collins http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1486 JB Collins Fri, 06 Feb 2009 13:38:09 +0000 http://askfsb.wordpress.com/?p=847#comment-1486 One of the biggest advantages of using an HSA has not been mentioned. If it is linked to a good High Deductible plan, one gets the much lower negotiated rates for medical services. I have been using Anthem from BCBS for three years with excellent savings and without a heavy burden for legacy costs for my former employer. One of the biggest advantages of using an HSA has not been mentioned. If it is linked to a good High Deductible plan, one gets the much lower negotiated rates for medical services. I have been using Anthem from BCBS for three years with excellent savings and without a heavy burden for legacy costs for my former employer.

]]> By: Geri http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1485 Geri Fri, 06 Feb 2009 11:56:07 +0000 http://askfsb.wordpress.com/?p=847#comment-1485 I agree with Sandra....it was certainly used oddly (unless, as you say, it was changed after the fact). HSAs come with ONE very important eligibility CRITERIA: If you only read the later part, criteria fits. But that ONE messes it up. I agree with Sandra….it was certainly used oddly (unless, as you say, it was changed after the fact).

HSAs come with ONE very important eligibility CRITERIA:

If you only read the later part, criteria fits. But that ONE messes it up.

]]> By: Rick M, Modesto, CA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1482 Rick M, Modesto, CA Thu, 05 Feb 2009 23:23:41 +0000 http://askfsb.wordpress.com/?p=847#comment-1482 David, I'm really finding it difficult to figure out how fractional reserve banking is a "scam" that is "screwing" all of us. I suppose they should only lend what they have and they shouldn't be able to have a spread to make a profit? Isn't it difficult enough to acquire a loan as the system exists? Even if I was irate over the fact that my deposits were 2% below what they should be, I'd be an idiot to use that as a rationale to forego tax savings of 25-35% in taxes through an HSA. Another idea: why don't you open a bank that plays by much fairer, socialistic rules and pay us all our fair shake. David,

I'm really finding it difficult to figure out how fractional reserve banking is a "scam" that is "screwing" all of us. I suppose they should only lend what they have and they shouldn't be able to have a spread to make a profit? Isn't it difficult enough to acquire a loan as the system exists?

Even if I was irate over the fact that my deposits were 2% below what they should be, I'd be an idiot to use that as a rationale to forego tax savings of 25-35% in taxes through an HSA.

Another idea: why don't you open a bank that plays by much fairer, socialistic rules and pay us all our fair shake.

]]> By: desidown http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1480 desidown Thu, 05 Feb 2009 16:52:54 +0000 http://askfsb.wordpress.com/?p=847#comment-1480 Sandra, The word criteria was used correctly ( since there are two things : HDHP AND No other health plan) - unless the article was changed after your comment. Sandra, The word criteria was used correctly ( since there are two things : HDHP AND No other health plan) – unless the article was changed after your comment.

]]> By: Sandra Detrick, Belfast, Maine http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1479 Sandra Detrick, Belfast, Maine Thu, 05 Feb 2009 04:00:42 +0000 http://askfsb.wordpress.com/?p=847#comment-1479 Please learn that the word "criterion" is singular and the word "criteria" is plural. Please learn that the word "criterion" is singular and the word "criteria" is plural.

]]> By: Amit, Atlanta, GA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1478 Amit, Atlanta, GA Thu, 05 Feb 2009 00:28:48 +0000 http://askfsb.wordpress.com/?p=847#comment-1478 just to add the HSA account balances can be rolled over to another year which is NOT possible with FSAs just to add the HSA account balances can be rolled over to another year which is NOT possible with FSAs

]]> By: Cheryl, Philadelphia, PA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1475 Cheryl, Philadelphia, PA Wed, 04 Feb 2009 20:01:13 +0000 http://askfsb.wordpress.com/?p=847#comment-1475 David - Please get a grip. You are horribly misinformed. while these funds are maintained in an account, there is a guaranteed rate of return and the funds are avaiable for immediate distribution for eligible expenses. The intent is that these accounts are for immediate medical expenses not covered by the health plan or for retirement. They are not part of the company's or the bank's general assets so there is no risk involved. David – Please get a grip. You are horribly misinformed. while these funds are maintained in an account, there is a guaranteed rate of return and the funds are avaiable for immediate distribution for eligible expenses. The intent is that these accounts are for immediate medical expenses not covered by the health plan or for retirement. They are not part of the company's or the bank's general assets so there is no risk involved.

]]> By: kevin mctaggart omaha ne http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1474 kevin mctaggart omaha ne Wed, 04 Feb 2009 19:52:04 +0000 http://askfsb.wordpress.com/?p=847#comment-1474 There are HSA's that allow you to put your money into money markets that offer higer rates then the chump change you are talking about. Shop your banks. How about the Tax deductable option. If you are in the 25% tax bracket, you will get a 25% tax break if you itemize. $4000 after taxes is $5000 before taxes. Talk to your tax advisor. There are HSA's that allow you to put your money into money markets that offer higer rates then the chump change you are talking about. Shop your banks.

How about the Tax deductable option. If you are in the 25% tax bracket, you will get a 25% tax break if you itemize. $4000 after taxes is $5000 before taxes. Talk to your tax advisor.

]]> By: rsgrady, atlanta http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1170 rsgrady, atlanta Sat, 06 Dec 2008 15:10:57 +0000 http://askfsb.wordpress.com/?p=847#comment-1170 The Answer for me to the question posed is YES. I have spent less than $4500 on ALL of my health related expenses this year for my family including my insurance premiums. My entire family got physicals (covered by the plan) this year and we have not avoided going to the doctor when ill. I spent over $12,000 in premiums alone the prior year. An easy to use online resource is http://www.hsaeducator.com The Answer for me to the question posed is YES. I have spent less than $4500 on ALL of my health related expenses this year for my family including my insurance premiums. My entire family got physicals (covered by the plan) this year and we have not avoided going to the doctor when ill. I spent over $12,000 in premiums alone the prior year. An easy to use online resource is http://www.hsaeducator.com

]]> By: Darryl, Rancho Cucamonga, CA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1169 Darryl, Rancho Cucamonga, CA Sat, 06 Dec 2008 00:29:47 +0000 http://askfsb.wordpress.com/?p=847#comment-1169 I found that if you plan the year before making the change to a HSA you can put yourself into a great situation. Have a FSA the prior year and use any excess funds that you have left over in the first 3 months of your HSA year and you do not come out pocket any money that isn't remimbursed to you early on. This gives you time to build up your HSA account. The FSA has a grace period that extends into the following year that allows you to dip into the prior year. If you look carefully at your plans you are paying the health care provider money that you could be paying yourself. I found that the difference was small. e.g. I have a deductible of 1,200 for my HSA. If I did the traditional I would pay for that insurance monthly 60 a month plus have a $600 deductible. 720 + 600 = 1320 that I paid. $600 of which I didn't not receive any goods or services for. I could have used that 1320 in my HSA and I may or may not have used the money and it earned me interest. I no longer see the benefit of the traditional plan. Look at the facts from a different perspective. I found that if you plan the year before making the change to a HSA you can put yourself into a great situation. Have a FSA the prior year and use any excess funds that you have left over in the first 3 months of your HSA year and you do not come out pocket any money that isn't remimbursed to you early on. This gives you time to build up your HSA account. The FSA has a grace period that extends into the following year that allows you to dip into the prior year. If you look carefully at your plans you are paying the health care provider money that you could be paying yourself. I found that the difference was small. e.g. I have a deductible of 1,200 for my HSA. If I did the traditional I would pay for that insurance monthly 60 a month plus have a $600 deductible. 720 + 600 = 1320 that I paid. $600 of which I didn't not receive any goods or services for. I could have used that 1320 in my HSA and I may or may not have used the money and it earned me interest. I no longer see the benefit of the traditional plan. Look at the facts from a different perspective.

]]> By: Greg Clough, Arlington VA http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1167 Greg Clough, Arlington VA Fri, 05 Dec 2008 19:58:08 +0000 http://askfsb.wordpress.com/?p=847#comment-1167 David-You need to get your head on straight. HSA's are great plans for companies. Even with paying out the HSA high deductible, employees save 25%-30% worse case scenario. David-You need to get your head on straight. HSA's are great plans for companies. Even with paying out the HSA high deductible, employees save 25%-30% worse case scenario.

]]> By: Andrew, Atlanta http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1154 Andrew, Atlanta Thu, 04 Dec 2008 04:04:56 +0000 http://askfsb.wordpress.com/?p=847#comment-1154 GE, BP get great returns so what is the point? For no risk you get a sensible return on the HSA account. This is a capitalist society, you make a return, it is invested with someone and they use it to make a return to. The greed has taken place at the corp level and at the personal level. 5% no risk, 10% massive risk. Go figure the next time you are at the doctor and need to pay which option you should have taken. Better yet, go pay for a high POS plan up front with no return...... GE, BP get great returns so what is the point? For no risk you get a sensible return on the HSA account. This is a capitalist society, you make a return, it is invested with someone and they use it to make a return to. The greed has taken place at the corp level and at the personal level. 5% no risk, 10% massive risk. Go figure the next time you are at the doctor and need to pay which option you should have taken. Better yet, go pay for a high POS plan up front with no return……

]]> By: David Frantz http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1151 David Frantz Wed, 03 Dec 2008 13:52:31 +0000 http://askfsb.wordpress.com/?p=847#comment-1151 Hey fellow AmeriKANS...... The banks and others love this stuff...they pay you CHUMP CHANGE interest that does not even keep up with INFLATION then lend this (YOUR) money out with 10 to 1 to 30 to 1 leverage. SWEEEEET for the banks and for you..... CHUMP CHANGE! Use YOUR money to GET OUT OF DEBT! Two most power full things used against you to get your money are: FEAR and GREED Hey fellow AmeriKANS……

The banks and others love this stuff…they pay you CHUMP CHANGE interest that does not even keep up with INFLATION then lend this (YOUR) money out with 10 to 1 to 30 to 1 leverage.

SWEEEEET for the banks and for you….. CHUMP CHANGE!

Use YOUR money to GET OUT OF DEBT!

Two most power full things used against you to get your money are:

FEAR and GREED

]]> By: Larry Deegan, HSA Adminstrator, American Chartered Bank http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1150 Larry Deegan, HSA Adminstrator, American Chartered Bank Wed, 03 Dec 2008 02:35:21 +0000 http://askfsb.wordpress.com/?p=847#comment-1150 Anyone that purchases a qualified high deductible healthplan can contribute to an HSA as long as you have no additional health coverage. These benifit programs could include coverage such as as a full medical FSA, Tricare, VA Benefits or Medicare. Organizational structure can impact funding. If you are an S-Corp you are required to fund your HSA with after tax dollars and line item deduct those contributions on you personal tax returns. Some S-Corp owners take K-1 distibutions to fund their HSA accounts. If you are C-Corporation, the corporation can make deposits on a pre-tax basis to the accounts in you and your wife's name. Please consult with a licensed tax advisor regarding the handling of contributions to your HSA account. For additional information about HSA's and our Free HSA account contact me at 847-273-1649. Anyone that purchases a qualified high deductible healthplan can contribute to an HSA as long as you have no additional health coverage. These benifit programs could include coverage such as as a full medical FSA, Tricare, VA Benefits or Medicare.

Organizational structure can impact funding. If you are an S-Corp you are required to fund your HSA with after tax dollars and line item deduct those contributions on you personal tax returns. Some S-Corp owners take K-1 distibutions to fund their HSA accounts.

If you are C-Corporation, the corporation can make deposits on a pre-tax basis to the accounts in you and your wife's name.

Please consult with a licensed tax advisor regarding the handling of contributions to your HSA account.

For additional information about HSA's and our Free HSA account contact me at 847-273-1649.

]]> By: Diane Pressley, Oak Brook, IL http://smallbusiness.blogs.cnnmoney.cnn.com/2008/12/01/will-an-hsa-save-you-money/#comment-1145 Diane Pressley, Oak Brook, IL Tue, 02 Dec 2008 14:39:42 +0000 http://askfsb.wordpress.com/?p=847#comment-1145 Did you know Millennium Trust, Oak Brook, IL, offers Health Savings Account solutions to employees, employers and broker/dealers? Visit http://www.mtrustcompany.com/services/hsa/. For more information on how an HSA can help you, contact Alexandra Lyons at 630.368.5608. Did you know Millennium Trust, Oak Brook, IL, offers Health Savings Account solutions to employees, employers and broker/dealers? Visit http://www.mtrustcompany.com/services/hsa/. For more information on how an HSA can help you, contact Alexandra Lyons at 630.368.5608.

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