As every American knows, healthcare in the United States isn’t as perfect as we would like it to be. Though many Americans sleep well every night because they think their futures are secured, they are often shocked when they discover that they need to pay money out of their own pockets when they suffer injuries or disease. One of the biggest advantages of an HSA is knowing that you have money set aside to cover any unforeseen healthcare expenditures. Simply put, there are less surprises because you have privately funded your own healthcare safety net. You would be shocked to discover what people are paying for healthcare in the United States without an HSA as fallback plan.
According to the National Conference of State Legislatures, the average American family pays $16,800 in health insurance premiums each year. That sounds like a lot of money – and it is. But what does the future hold for healthcare premiums? Well, the New York Times also reported that health insurance companies want to increase their rates as much as 20% to 40% due to inadequate planning. The AFA is far from perfect, and health insurance companies felt that those making claims were far sicker than they expected. With so much change in the American healthcare system and rising premiums, you would be at a far greater advantage if you had funding set aside in an HSA for life’s healthcare surprises.
Control of Your Healthcare Funds
But the biggest problem is that American families are relinquishing their control over their funds without an HSA. Though the terms and conditions vary from plan to plan, it is unlikely that a family would get all of the money back that they paid into their plan. To be fair, it is both necessary and crucial to have health insurance, but an HSA is a great way to augment your current insurance plan.
With an HSA, you have complete control over your funding. There are some small exceptions relating to withdrawing funds before a certain period of time or for an unintended purpose, but by and large you will maintain control of your funds. Not only do you have the option to withdraw funds to be used for other purposes during times of financial turmoil (subject to relatively small fees), but you can then pass on those funds to loved ones after you pass if you never used them for healthcare expenditures.
With other types of health insurance, your options are much more limited. While other types of health insurance are essential to protecting you and your loved ones’ futures, financially savvy individuals will opt for an HSA because they offer far greater financial flexibility.
How to Invest in an HSA
When you want to take control of your financial destiny, contact Benefits Age. We can help you understand all of the inner workings and details of HSAs so you can make the right choice for your future.