Hi everyone, I posted this in my journal but thought I'd share it here because of how great this is.
I'm really excited because I did some research on HSA plans, and right now I'm participating in the EPO plan with my company. It's $23 every 2 weeks, but next year it will be $38 (increased expenses). The HSA/HDHP plan costs $16.50 and won't be increasing, and my company contributes $750 per year into it. I ran some calculations, and based on 5 office visits and 2 lab/x ray, I will have a HSA balance of $900 at the end of the year. That's spending the same per year (contributing 500$ into the account personally + the employer contribution of 750$). So essentially I'm making $900 for free, doing the same thing (and that is being conservative with Dr.'s visits etc). Plus, that accumulates interest, although I'm not sure if my company gives me the choice of investing it in mutual funds or not.
The sad part is open enrollment isn't for another 5 months, but I'm still super stoked about having an HSA plan started in the near future, which will help with ER, and yields another great way of getting "free" money from work! I'm a very healthy individual though so I don't see why it wouldn't be north of $1000 saved per year, while spending the same on health insurance. Just another way of squeezing out another $1000 a year :).
If I didn't want to spend the extra $500 I could technically omit that, have $500 in the account at year end and have saved $528 just by switching plans, but I'd rather invest in HSA for down the road. I might even do over $1000 just because of it's tax advantages. So many options it's almost overwhelming :)
I should also note my deductible is $2,000, so if I had to have major surgeory and spent $50,000 on the procedure, my out of pocket would be $1166 for the EPO plan, and $1646 with the HDHP W/ HSA plan. So it has a safety net that protects me if something bad happened. Plus most people here ride bikes and probably don't over eat much since that costs money lol, so if you're healthy you save TONS.
In summary. I recommend HSA plans! So look into it with your company. It's tax deductible, on Social Security and Federal taxes etc. And according to About.com:
Contributions to an HSA are tax-deductible. Earnings, such as interest and dividends, in the health savings account are tax-exempt at the federal level. Withdrawals from a health savings account are tax-free as long as the funds are used for qualified medical expenses.
Reference:
http://taxes.about.com/od/deductionscredits/p/HSA.htm