What Everybody Ought to Know About Health Savings Accounts

Today I'm tackling the Health Savings Account. Premiums, medical bills, even wellness visits add to the financial stress of the cost of health care, but a HSA can help alleviate some of the burden. In my Indy Star column from this week I look back on my own health care costs:

"Over the past 13 years, I’ve paid nearly $162,000 in premiums. We’ve had approximately three claims: the births of our two children and the death of deer via a Volkswagen Beetle. This math created a helpless feeling. No matter what I do, no matter how safe I am, I’ll still have to “waste” money on insurance. Don’t get me wrong: I’m huge believer in insurance, but I don’t like my premium reality.

If there were a type of insurance that not only protected me yet rewarded me for low-risk behavior, I’d be all over it. And I am. It’s called a health savings account, paired with high-deductible life health insurance. I’ve come to the conclusion that an HSA is a great decision, especially for those that are not only healthy but fiscally responsible to boot." (courtesy of the Indy Star)

I get it, dealing with something as expensive and important and health care is nerve wracking, but that's why I'm here. Recently on The Pete the Planner® Radio Show on 93 WIBC, I spoke at length on this topic with the help of my friend Paul Ashley a First Person Benefit Advisor. Listen below for a thorough examination of the Health Savings Account and how it will affect your budget and your overall financial wellness.

"Ultimately, though, this is all about being proactive. In your financial life, proactive is budgeting, building an emergency fund and staying out of debt. That way, when life happens, you are prepared. Does losing your job stink? Absolutely. But having three months’ worth of income set aside in your emergency fund helps smooth out the bumps.

As health-care consumers, we’ve been trained to be reactive. We pay a bunch of nonrefundable money (premiums), and then we care about our health when something goes wrong. This is incredibly backwards." (courtesy of the Indy Star)

I know you want to get out of debt, but sometimes reassessing your current practices can make as big of a difference for your future. Think of it as a savings account to prevent future medical debt.