Health Savings Accounts, or HSAs for short, provide massive benefits to the residents of Chicago. They are very similar to other types of personal savings accounts that you can open with your favorite bank – but there is one important difference. The savings are used as a means to pay for healthcare expenses should you run into health troubles down the road. One of the greatest advantages is the amount of control you have over spending your healthcare savings. Instead of having to deal with an insurance agency or an employer’s healthcare provider, you are in full control. Yet another attractive benefit of HSAs is the fact that the funds you save are tax free. There is just one caveat: in order to open an HSA, you need to qualify for high-deductible insurance.
What Does “High Deductible” Mean?
A deductible is simply a sum of money that you need to pay an insurance program before you gain coverage. If you fail to pay your deductible, your coverage will suffer. Some people who lack adequate funding find it difficult to pay a high recurring deductible, but if you can afford to your healthcare coverage will increase.
Why Do HSAs Exist in the First Place?
Ultimately HSAs were created as a tool to help control the rising cost of healthcare in the United States. Unfortunately, the USA is known for having one of the most expensive healthcare systems in the world. The driving principle behind HSAs is the idea that an individual will use their healthcare funds more appropriately if it is their own money rather than money from a financial institution.
Pros and Cons
Like any other choice in life, HSAs have upsides and downsides. You need to consider them carefully before you make your decision. One area where HSAs excel is long term protection. For example, if you wanted to diligently save for unexpected healthcare costs as you age, an HSA is a great option. On the other hand, if you already have a health condition or you see probable health problems in the near future and you can’t handle a sizable deductible, an HSA may not be right for you.
Again, remember that you are in complete control of your HSA funds. This will enable you to seek healthcare from multiple providers instead of suffering the stipulations, caveats, and contingencies of other forms of insurance. However, don’t make the mistake of thinking that you are the only one who can deposit funds into your HSA. In addition, your employer can make contributions. If you leave your current employer, the money in your HSA remains yours as well.
However, there are a few challenges when it comes to saving for your own healthcare. First and foremost, some people have difficulties setting aside regular amounts of money and devoting a portion of their income to healthcare. To compound this problem, nobody knows what the future holds. Different diseases costs varying amounts of money to treat. As such, it is hard to accurately predict your future healthcare needs and expenditures.
Work with Benefits Age in Chicago
If you live in Palatine, Schaumburg, Arlington Heights, Mt. Prospect, or the Chicago area, consider working with Benefits Age. We know insurance inside and out, and we can help you find the plan that’s right for you.