morfizm (morfizm) wrote,
morfizm
morfizm

HSA

Why HSA is a f-ing no-brainer?

Compare:

1. With FSA - deductible is $1000, max FSA contribution $2500

Medical bill

Deductible paid by FSA

Co-insurance paid by FSA

Total spent pre-tax

Employer gift pre-tax

Total saved pre-tax

Saved-spent pre-tax

0

0

0

0

0

0

0

1000

1000

0

1000

0

0

-1000

1500

1000

50

1050

0

0

-1050

2000

1000

100

1100

0

0

-1100

3000

1000

200

1200

0

0

-1200



2. With HSA - deductible is $1500, max HSA contribution is $3000; employer gift is $500 pre-tax.

Medical bill

Deductible paid by HSA

Co-insurance paid by HSA

Total spent pre-tax

Employer gift pre-tax

Total saved pre-tax

Saved-spent pre-tax

0

0

0

3000

500

3500

500

1000

1000

0

3000

500

2500

-500

1500

1500

0

3000

500

2000

-1000

2000

1500

50

3000

500

1950

-1050

3000

1500

150

3000

500

1850

-1150



Notice that "saved minus spent" pre-tax is about the same if your medical bills per year are at least 1500, and HSA gives ~500 extra if they're less than that.
Per this calculation (assuming you're interested in pre-tax saving, and "saved minus spent" makes sense for you), HSA is:
- guaranteed to be same or better than normal plan, regardless of your medical expenses,
- for small annual expenses it's even better,
- you have no more hassle in trying to guess what your expenses will be, to decide FSA contributions, and then making sure you spend them, or else you'd lose them; with HSA anything unspent is just pre-tax savings!

I was a stupid idiot that I didn't research it earlier.
Tags: 1, in english, money, usa
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