Reply #109: Payroll/Benefits Administrator here

[REACTIVATED IN CT]

HSAs can enable an employer (or a self insured person) to purchase a lower cost insurance coverage (HDHP). I'm very surprised to learn that in some areas of the country they actually cost more than a standard HMO or indemnity plan. Something is not right there. The insurer is taking on less risk, therefore the premiums should be lower - if we are comparing apples and apples.

IMO HSA's are a calculated risk -you are gambling that you will be healthy until you have a good amount of money socked away. The other alternative is to pay more for a comprehensive "first dollar" policy - which you may not collect anything from.

Even if you are lucky enough to have an employer who is funding the deductible in full, you could have cash flow issues if you need high cost medical care such as a hospitalization early in the year. Not everyone has money in the bank to cover that sort of expense. Hopefully you could work out a payment plan with the providers. As each year goes by and more money builds up, that scenario becomes less likely

I don't like to see an employer offer an HDHP/HSA combo as the only option - but sometimes it is the only way the company can afford to offer health coverage today.

Until we get a Democrat in the White House and more Dems in Congress and can spend our tax dollars on things we need like universal health care, HSAs can be a coping mechanism.