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Posts tagged with: debts

How’d We Do on Healthcare?

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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.