It’s the time of year we all step back and look at open enrollment options for healthcare. We made the big decision to flip from a very safe HMO to a somewhat financially risky HSA last year. You can see the post HERE. I also included a helpful video in that post that outlines the basics of an HSA. HSA’s are great but can be potentially risky financially if you have a big health emergency. It’s a high deductible plan and if you don’t have the money, you run the risk of accruing debt. If my family of 6 accumulated more than $3K in healthcare costs, it would come straight from our emergency fund. Fortunately, HSA’s have a maximum out of pocket and we have more in our emergency fund than the maximum out of pocket so we decided it was a risk we were willing to take.
So how much did we accumulate in healthcare costs from the hospital? $200. Yup. That was it. And we cash flowed it. Buuuuuut…we did end up pulling $600 out of the HSA account. Nope, not from a trip to the hospital. Ugh. My dental bills will always be the death of us. I needed a root canal and a crown. We now have roughly $2,400 in our HSA investment account we get to roll to next year.
And did I mention that money is invested and we’re EARNING INTEREST!? Rock on HSA!
My husband and I sat down to look at our medical spending and run the risk analysis again for this year. Our risk is even lower this year with the $2,400 we are rolling forward so it makes the most sense to stick with the HSA for another year.
I know it’s easy to ignore your health insurance options. No one enjoys sifting through boring and somewhat confusing information but I encourage you to look into these choices as a possible way to save money next year. Are you really in the best plan? Could you do better? Take a moment (ugh, or a few hours/days) and research your options.