Health Savings Accounts (or HSAs) are taking a seat at the benefits table. According to the Devenir 2018 Year-end HSA Research Report, there are an estimated 25 million HSA accounts (up approximately 13% from a year ago). HSA assets now total over $53.8 billion.
However, not everyone is sold on these accounts. With these five reasons, it is a wonder anyone enrolls in an HSA!
I like paying taxes
I heard that HSAs had a triple tax benefit. The money is deposited into the HSA pre-tax. It grows tax-free. And, when I use it for eligible medical expenses, it remains tax-free. They say it is the only truly tax-free account. It feels like robbery. I feel a sense of obligation to pay more in taxes. With all the taxes I would avoid with an HSA, I simply don’t feel right about it. I like paying taxes. It is my civic duty.
I don’t want to save for the future
I believe in living in the here and now. Saving for the future is pure rubbish. Yeah, they tell me I need close to $300,000 for medical expenses in retirement, but I don’t believe them. I am invincible. Saving for the future just sounds like a bad investment. Sure, HSAs rollover from year-to-year and are portable if I change employment. Who needs all that money following them around? Not me.
I love receipt requests
So, I have a secret crush. I really shouldn’t say anything, but I can’t hold it in anymore. While my co-workers with an HSA are care-free and never receive a request for a receipt, I anxiously await a receipt request from my Medical FSA. Sometimes, I even try to challenge the system. Last week, I swiped my card at the dentist office for teeth whitening. I wanted to see if they would catch me using my FSA for ineligible expenses. Low and behold, I received the receipt request shortly thereafter. Where else can you get a thrill like that?
I can’t give up my co-pays
I am not going to lie. My premiums are high. But, I am determined to keep my co-pay plan. I don’t have any chronic conditions but I go to the doctor a couple times a year. It is comforting when I only have to pay $25 a visit. Some say I am foolish. I like to think I am keeping my employer honest.
I don’t believe in free money
My employer indicated they will contribute $1,000 towards my HSA. But, I am just not having it. I am not a charity case. They just want me to move to the high deductible health plan. I know the game they are playing. They say I get to keep the money, but they’ll change their mind and I will be left with nothing but a high deductible.
HSAs are a choice.
Health Savings Accounts are an individual choice and are often influenced by a variety of factors. Make sure you have your facts straight when enrolling in benefits so you can make the choice that is truly right for you.
- HSAs are a triple tax benefit.
- They earn interest or can be invested.
- HSAs automatically rollover from year-to-year and are never lost.
- You own your HSA (not your employer). You even keep it if your employer changes.
- HSAs are funded by employees, employers (and sometimes third parties).
Remember, make the choice that is right for you! Learn more about HSAs and enroll in an HSA.
