Switch to HSA and HD insurance?

[fiveoh]

I'm currently paying $185 a month for my health insurance(2500 deductable and 30 copay on drs visits).  My job(very small company) gives me a stipend of that amount monthly for my health insurance.  Lately I have been toying with the idea of getting a high deductable insurnace plan and an HSA instead of my current plan. I got a quote of $80 a month for the insurance(5000 deductable and I pay everything until I hit that).  That would leave me an extra $105 a month to put in an HSA account.   Is this a good idea?   I RARELY go to the doctor(once a year at most for a sinus infection or something similar where I need some meds).   Are there any downsides to the HD insurnace plan + HSA besides the high deductable?   I'm 30, eat pretty well, my cholestrol, blood pressure, glucose etc are all in the normal range, I workout 5x a week etc etc.   I figure this is a great way to get an extra $105 a month invested and build up a little "health nest egg" for the future.  Advice?  Suggestions?  Do it or dont? 

[Melissa]

That is the route we have chosen. Is yours an individual policy? Ours is for our family of five. It is a $6000 family deductable (or $2300 for an individual family member). We are very healthy and have been building up our HSA. We maxout the HSA contribution (it helps lower our AGI) year, though we will probably stop once the kids are older ( did you know they are accident prone? !augs).  That money became very useful the year we discovered that I have a heart condition (PSVT). The trip to the emergency room and all the tests run were over $3000, plus I had to have further testing done. Thankfully we only had to pay the 2300.

Since you are healthy, I endose the plan you've thought through

[fiveoh]

Yes mine is an individual policy.  I was quoted a few other HSA compatable plans with lower deductables, however they cost more per month.  I would rather pay less and stash away the difference.  I am married and have one child but they are both under a plan my wife gets through work.  It was going to be $270 a month to add me to that plan so I've stuck with my own since it is cheaper.  Thank  you for the reply! 

[biliruben]

I just quit my job, and signed up for a $7000 deductible plan coupled with an HSA.  Maximum annual-out-of-pocket of around $10,000.  If you are working, your employer needs to sponsor the HDHP and HSA for you to have access to it I think.  My previous employer didn't.

COBRA for me and my boy would have been $1150 a month.  Moving him to my wife's plan would have been $300/mo. 

Both of us on the HDHP costs $214/mo through Regence.  I figure I'll squirrel away $200/mo through HSA Bank (which I haven't heard good things about.  Too many fees if you aren't careful), and then open up a TD Ameritrade account through them that allows for investing in anything under the sun (other than options or on margin).  Essentially a second IRA, but you have to spend it on healthcare.    The reason I am going HSABank is because that appears to be the only way to get a full-service brokerage account.  Someone let me know if they know of other options that allow this.

My main concern is ER visits, but given that we are going to be saving about $10,000/yr going this route (about the same as the maximum out-of-pocket), I'll takes my chances.

[fiveoh]

Hmm... I was under the impression that as long as I paid for my insurance plan, I could sign up for an HSA account.  Maybe i'm wrong...  my company pays for my insurance but the way it works for me is they just add the amount it costs to my salary.  So to the insurance companies or whoever it just looks like I am paying for it.  I was going to use HSA Bank as well for the same reason.  They have their fees listed and it seemed you could avoid almost all of them as long as you kept a certain balance in the account.

[biliruben]

If they simply give you the money and let you do the rest, you may well be right.  I'd ask to make sure however.