Disadvantages of Health Savings Accounts

A Health Savings Account can be a great tax-free investment for those who want to save for future medical expenses. There are many advantages that come with a Health Savings Account. That being said, an HSA may not be the best option for everyone. Some insurance professionals believe that Health Savings Account may actually be harmful for some citizens in the long run. Below we list some disadvantages of health savings accounts so you can decide if opening one is the right choice for you.

It Takes Time

The contributions made to one’s Health Savings Account are funded by their income. Most people pay into their HSA with every paycheck. This means that those who don’t have high income may have to wait some time before they see a hefty balance. This may not be the best option for those who may be expecting to pay medical expenses soon.

Complicated

Opening and maintaining a Health Savings Account may be complicated. There are a lot of regulations, terms, and specifics that may not thoroughly understood by some clients. Some people may be confused when it comes to understanding payouts and investing.

Health Savings Account Quote

 

No Prescription Drug Copays

With a Health Savings Account, owners are required to pay the full amount for prescription drugs (minus their health plan discount) until the deductible is reached. This can become extremely expensive since many prescriptions are pricey.

High Deductibles

An HSA comes with much higher deductibles than standard PPO health plans. The IRS requires that qualified Health Savings Account plans come with a minimum family deductible of $2,400, but could be as high as $6,500 with a maximum out of pocket of $12,100. This can cause some lower income people to put off minor but important care treatments because they’re so expensive.

Limits

Health Savings Account regulations also limit the amount of money a person can contribute to their account per year. Owners with individual plans can only invest $3350 year and those with family plans are limited to $6650 per year.

Now that you know the disadvantages of health savings accounts, you can decide if opening one is right for you. If you think that you could benefit from investing in a Health Savings Account, contact us today and we’ll help you get the protection you need. SkyBlue Insurance is an authorized rep for leading providers of Health Savings Accounts. Give us a call or visit the site and request a Health Savings Account quote for free!

Disadvantages of Health Savings Accounts

A Health Savings Account can be a great tax-free investment for those who want to save for future medical expenses. There are many advantages that come with a Health Savings Account. That being said, an HSA may not be the best option for everyone. Some insurance professionals believe that Health Savings Account may actually be harmful for some citizens in the long run. Below we list some disadvantages of health savings accounts so you can decide if opening one is the right choice for you.

It Takes Time

The contributions made to one’s Health Savings Account are funded by their income. Most people pay into their HSA with every paycheck. This means that those who don’t have high income may have to wait some time before they see a hefty balance. This may not be the best option for those who may be expecting to pay medical expenses soon.

Complicated

Opening and maintaining a Health Savings Account may be complicated. There are a lot of regulations, terms, and specifics that may not thoroughly understood by some clients. Some people may be confused when it comes to understanding payouts and investing.

Health Savings Account Quote

 

No Prescription Drug Copays

With a Health Savings Account, owners are required to pay the full amount for prescription drugs (minus their health plan discount) until the deductible is reached. This can become extremely expensive since many prescriptions are pricey.

High Deductibles

An HSA comes with much higher deductibles than standard PPO health plans. The IRS requires that qualified Health Savings Account plans come with a minimum family deductible of $2,400, but could be as high as $6,500 with a maximum out of pocket of $12,100. This can cause some lower income people to put off minor but important care treatments because they’re so expensive.

Limits

Health Savings Account regulations also limit the amount of money a person can contribute to their account per year. Owners with individual plans can only invest $3350 year and those with family plans are limited to $6650 per year.

Now that you know the disadvantages of health savings accounts, you can decide if opening one is right for you. If you think that you could benefit from investing in a Health Savings Account, contact us today and we’ll help you get the protection you need. SkyBlue Insurance is an authorized rep for leading providers of Health Savings Accounts. Give us a call or visit the site and request a Health Savings Account quote for free!