Reply #55: I looked into getting an HSA, and there were several problems

[Lydia Leftcoast]

1. An HSA costs MORE in premiums per month than a conventional policy

2. In addition to premiums, you have to put aside $200 a month. In essence, you're just prepaying your deductible. The tax saving doesn't balance out the hardship of coming up with an extra $200 a month if your income is variable (as mine is). I remember a NY Times article that said that most people with HSA's had not made the expected contributions.

3. HSA's work ONLY with certain designated HSA policies. If you have a conventional policy with a high deductible, you can't start a qualified HSA unless you get one of these special policies. I asked my insurance co. about doing this, and they said I would have to reapply from scratch, even though they have all my medical records from the past 16 years. Someone with experience in the insurance industry told that they were hoping I would make a mistake on my application so they could deny me.

Like most Republican ideas, HSA's sound good--until you look at the details and the real-life ramifications--unless you're fairly affluent. They're good for rich people who want yet another tax shelter.