Ever since I left the large cooperate world I have been using a High Deductible Insurance plan coupled with a HSA (Health Savings Account). This combo has saved me a great deal of money while still keeping me covered in case of a unexpected event that may lead to large medical bills.
One of the advantages of a HSA is that the funds can be used for dental and vision expresses, among other things. Sure my dental and vision insurance covered it before, but that insurance wasn’t free and when I took the time to add up the cost of the insurance it ended up costing me more than the benefits that I use on a regular basis.
Two other advantages of using the HSA are that the expenses end up being tax deductible, because the money was originally a contribution to the HSA. Secondly the account is like a savings account that accumulates interest and doesn’t have to be used by any specific date. You can also withdraw money penalty free at age 65, but the amount withdrawn will be subject to income tax.
I look at my High Deductible Insurance and HSA as a great way to maintain more control over my money, while still giving me enough health insurance coverage for the unexpected things that could happen.
