Making the Most of My HSA Dollars
Posted on October 15, 2007 by Him and tagged hsa, insurance
photo: double dose
Through my employer, I currently have a high-deductible healthcare plan (HDHP) coupled with a health savings account (HSA). These accounts are like flexible spending accounts (FSAs) in that pretax dollars can be used for a variety of qualified health-related expenses. The exception is that there is no "use it or lose it" policy - I get to keep the money from year to year.
Fortunately, each year my employer contributes close to the maximum amount to my account. Here are some of the ways that I have maximized the money in my HSA:
Made sure I was billed correctly
My insure plan entitles me to one complementary check up exam per year. After I saw my doctor, I was pretty shocked to see that I had a bill to pay. When I delved further into the matter, I saw that he entered in another billing code. I called up the office and my insurance company to straighten the matter out. It took a little while, but it saved me almost $200.
Made a payment plan
If you know you're going to have a major procedure done, but you're a little short on funds in your HSA, call the hospital and see if you can work out a payment plan. I did this when I had knee surgery last year. When I decided to have knee surgery, my company had just established the HDHP/HSA plan. My employer deposits money into my account once per quarter, so I knew I wouldn't have enough to cover the deductible right away. I called the hospital and asked if I could be put on a payment plan. That helped tremendously when forecasting cashflow for my HSA account.
Asked for the cheap stuff
During one of my doctor visits, my doctor prescribed me a new medication for hypertension (which thankfully I don't have to take anymore). I bluntly asked him, "Can you prescribe me something that isn't very expensive because I have a HDHP/HSA?" He prescribed me a medication that was easily available as a generic; it only cost me $8/month to fill!
Also, I always buy store brand versions of common over-the-counter (OTC) medications.
Blew through my deductible early in the year
I had knee surgery early in the year, so I met my deductible very quickly. Since I was aware of this, I made sure to try and schedule any major appointments with my doctor before the year was up, since my insurance would cover it. If I waited to do the procedure until late in the year, I wouldn't have as much time to take advantage of what my insure would cover.
Coupons!
I use coupons for almost everything I buy with my HSA account. OTC medications, saline solution, eye exams, and contacts are my main purchases. Also, be sure to check your sales fliers for stores that give out free gift cards when you fill a prescription. We haven't paid out of pocket for much at our local CVS since we've racked up so many of these gift cards.
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How do you maximize your healthcare dollars, regardless of whether you have an HSA?
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Ariella | Oct 15, 2007
Hmm, I think we must have something different than what you have. We get our health insurance through my work, and my husband's work offers an HRA (health reimbursement account), up to $10,000/year.
That means that for whatver medical expenses my insurance doesn't cover (co-pays, etc), we submit the bill to his HRA and get reimbursed 100%. We can also submit bills for certain medical items like bandages, OTC medications, etc.
We really love it because it essentially makes our medical expenditures $0/year. We are 100% reimbursed through his HRA for anything my insurance doesn't cover, up to $10k, but my insurance is really excellent... so we'll never reach that (hopefully!).
Be careful when asking for generic meds for things like depression. Generic meds are allowed to only have 80% (but up to 125%) of bioequivalence in comparison to their name-brand counterparts. That means a generic med can be 80% as effective as a name brand one! For many meds, this is acceptable; for things like depression, I feels as if that is too high of a risk to take with yourself.
Here's a good article pointing out a potential case in a depressed patient.
Him, we don't have an HSA at my company, but my understanding of it is that the funds deposited can be invested and grow tax deferred. Also, if they are not used for qualified medical purposes, they can be withdrawn at retirement age (59.5?) without penalty. Sounds like an IRA, no?
I think if I had an HSA, I would consider leaving the money alone and paying for medical expenses out of pocket. Of course, with your surgery, you're past the high deductible and into insurance payments land. I suppose this was the right way for you to approach it this year.
What about a normal year. Will you try to leave the money alone, and make it a pseudo retirement account?
It pretty much is an IRA. I think when there's more money in the account I'm also going to look at it as a medical emergency fund, though.
I don't think I'll ever truly leave this money alone. I will continue to use this fund for medical expenses because I'd rather pay for them with pre-tax dollars. I don't anticipate any major medical expenses in the future, so I plan on keeping medical related withdrawals to a minimum.
I've been thinking about what exactly to do with that money, and I think I'll probably invest it conservatively (think bond funds). I'd rather not lose what could potentially be a hedge against medical emergencies.
MVP | Oct 20, 2007
I've found my best defense against high health care costs and hassles with the insurance company is to go to the doctor as little as possible and take as few meds as possible. Yes, I'm serious. Once I got a full-time job with medical insurance, it took me awhile to realize that insurance didn't pay for much of anything, let alone everything. Every time I went to the doctor, I'd get a string of bills from the doc, his assistant, his brother, the brother's neighbor and don't forget the lab! Kidding, but it's close to the truth. And then there's the prescription meds. I've actually learned living with allergies, occasional insomnia and other non-life-threatening conditions is much easier than putting up with all the hassles. I've also become much more resourceful and proactive about taking care of myself.
In our family we fill the stockings on NYE (the "Little New Year" does this... it's a strange family tradition), and it usually leads to little gifts like fruits and candies and socks and toiletries. This year, with the HSA insurance account set to expire, I made one last trip to the drugstore and got a ton of needed items. My wife happily claimed it was the most pragmatic New Year's ever! (Next year I can gun for the most romantic...)
Jerry
www.leads4insurance.com
Mrs. Micah | Oct 15, 2007
I use generic OTC. I'm also trying to get generic antidepressants, but that's harder.
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