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Do you mean Health Share or Health Savings? I would avoid the former because it is not actually insurance, i.e., coverage is not guaranteed. The latter is with considering if you consider it a savings account and have a strategy of investing in it maxing our each year and then really only using it if you can’t swing the costs. If you save $3,000 a year you will have more than $100k at retirement and that will come in really handy.
Generally speaking, an HSA is good if you’re young and healthy and wouldn’t normally meet your deductible.
Do you mean HMO vs PPO?
Not being snarky but are you asking if you should forgo an actual insurance plan to instead just put aside money, pretax, to pay for your healthcare? I didn’t even know that was a thing.
If you can get cash rates from your doctors, they’re likely lower than what they charge insurance companies. That said, with an HSA, you’re locked in to the amount you choose for the year. You can add to it if something unexpected comes up.
I have an HSA and I like it. I learned a long time ago about how much our healthcare system sucks.
When you have a real health problem, especially if when you do, it’s not cancer but something in that size of scary and invasive or chronic, you will find that you need all sorts of help and most of it or at least a good part of it won’t be covered by standard insurance.
It’s very costly out of pocket for alternative or specialized practitioners - you’ll be happy to have that money aside for those emergencies. If you are over 29, I recommend HSA.
In any case, do the math. Try to imagine a scenario where you are sick and have to see multiple doctors for several months. Which plan works for you, taking into consideration what it will cost you for each and you’ll see what works best for you for worst case scenario. Worked for me.
Thank you
In my experience, health savings accounts are okay if you are sure you will spend the max on allowed expenses. (Childcare costs like daycare and summer camps being the most predictable example.) If not, you tend to be forced into a year-end shopping spree on shit like sunscreen and prescription sunglasses to empty your “use it or lose it” account.
I believe Flex spending accounts (FSA) for healthcare are the ones you have to empty by end of year. HSAs you can transfer year to year and make a long term investment vehicle if you want.
I freelance and have an HSA. I use it to put extra tax-free money away, and I invest it. My plan is to leave it alone until I can withdraw it like a retirement fund, ie not use it for health-related expenses. If you’re in the same boat watch the fees. I recommend Lively, there are no fees.
Only do an HSA if you would be able to pay the plan’s maximum out-of-pocket cost for the year (usually somewhere around $6500 for an individual). No matter how young and healthy you are, anyone can have a random accident or wake up with a serious illness. One visit to the emergency room can easily run thousands of dollars.