Does anyone here have any experience with those Health Savings Plans. I was talking to a company the other day about it and it looked pretty good. What you pays goes into a medical IRA. What you don't use rolls over at year's end and stays in the account like an IRA. It looks like a good deal for a healthy family like mine. The deductibles are a bit higher, but I can't remember the last time I even came close to meeting the deductable on a standard Cigna plan.
Those MSA/HSA plans look like a much better alternative to socialized medicine, especially for the self-employed.
My husband has one of those. It's just started and we haven't needed to use it yet, though, so I can't really say how useful it will be.
I enrolled in one through Lumenos. It's a pseudo-MSA, as the money that accumulates is not mine when I leave my employer - they keep it. I think they would get more takers if the money was portable when changing jobs.
However, I enrolled anyway as I believe in the overall concept. My employer puts $1000/year into the account. If I use that up, I pay $800 out of pocket before a traditional 90/10 policy kicks in. Costs me about $30/month in pre-tax dollars (I'm single). I can go to any doctor I want, although some are affiliated with Lumenos and give a discount.
Medical IRAs/MSAs are the way to go. It's ridiculous that people run to the doctor for every little thing since it only costs them a small co-pay. Insurance should be for catastrophic events.
I have had one for three years now and I love it.
I have catastrophic medical insurance that kicks in once I have met the $2000.00 a year deductible but when it does kick in it covers 100% of just about everything under the sun.
The back that my HSA is in sends me checks and a debit card so I just simply use those for any medical expenses. You can even use them for vision and dental expenses.
The money is taken out pre-tax, which lowers your tax bill and it does earn interest. Mine is earning 4% which is better then most money markets. Should I get beaned by a falling anvil then the money does become part of my estate so it is not lost. All in all I think it is the best thing since the internet. Especially if you start young you can have quite a medical nest egg built up for a medical rainy day. You can even use the money to pay your COBRA premiums in case you are laid off or have to go on STD.
Health Savings Plans are the invention of Steve Forbes.
Check out Forbes.com for numerous articles and his own Fact and Comment pieces.