HSAs in Practice

HSAs are not just for the young, healthy or wealthy; HSAs help individuals and families reduce healthcare costs while saving for the future.

Here are just a few cases of how HSAs are being used by actual consumers:
 

Single Female in New York
  Name: Emily  
  Location: New York, NY  
  Marital Status: Single  
  Occupation: Freelance Designer (self employed)  
  Annual Income: $50,000  
  Deductible: $3,000  
  Current Healthcare Status:  
  Emily has no major planned health expenses, only preventive care (covered by insurance under her deductible).  
  Result:    
  Emily pays $150 per month for her health plan premium. She contributes $100 per month into her HSA. She spends the money in her HSA, tax-free, on acupuncture treatment and contact lenses.  
       

 

Single Male in Florida
  Name: Michael  
  Location: Orlando, FL  
  Marital Status: Single  
  Occupation: Technology Developer  
  Annual Income: $90,000  
  Deductible: $3,000  
  Current Healthcare Status:  
  Michael is planning on getting LASIK surgery in the next few years and intends to use his HSA to pay for the service.  
  Result:    
  Michael’s employer contributes $200 per month into his HSA. He contributed $450 at the beginning of 2007 into his HSA (so that he could reach the maximum contribution of $2,850 by year-end). He does not spend money out of his HSA, and instead pays out of pocket for occasional visits to a chiropractor.  
       

 

Family of Four in Iowa
  Name: Smith Family (Ages 41 and 39)  
  Location: Cedar Rapids, IA  
  Marital Status: Married  
  Children: Two, Ages four (4) and eight (8)  
  Occupation: Retail Store General Manager  
  Annual Income: $80,000  
  Deductible: $4,000  
  Current Healthcare Status:  
  Mr. Smith has high cholesterol and takes medicines.  He also sees a specialist regularly. Additionally, one of the Smith children has chronic asthma.  
  Result:    
  Mr. Smith’s employer contributes $250 per month into his family’s HSA and Mr. Smith contributed an additional $1000 in the beginning of 2007. The Smiths pay out of their HSA for all doctor’s visits and medications until they have met their insurance deductible, at which time their insurance covers almost all additional expenses.  
       

 

Married Elderly Couple in California
  Name: Jones Family (Ages 60 and 55)  
  Location: Irvine, CA  
  Marital Status: Married  
  Children: Grown  
  Occupation: Mrs. Jones (primary insured) Works at a Law Firm  
  Annual Income: $150,000  
  Deductible: $3,000  
  Current Healthcare Status:  
  Mr. Jones has a chronic illness that requires he purchase expensive medicine and see specialists regularly.  
  Result:    
  Mrs. Jones’ employer contributes $1200 upfront into her family’s HSA. Mrs. Jones contributes $1800 upfront into her family’s HSA and another $800 for her “catch-up” contribution. Mr. Jones’ costly doctor visits and medications are not paid out of their HSA. They meet their insurance deductible quickly and insurance covers almost all additional expenses for Mr. Jones’ treatments. They are saving all the money in their HSA for planned health retirement expenses.  
       

 

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