Are HSA's for Everyone?

HSA plans are not for everyone. There are two components central to an HSA.

• High Deductible Health Insurance Plan
• HSA (Health Savings Account)

You have to have the high deductible health insurance plan to deposit money in an HSA. And not just any high deductible plan. You have to make certain that the plan is "HSA qualified". HSA qualified plans have some basic characteristics.

• These plans don't have a copay for doctor's office visits. If you want a plan where you can pay a $25 or $35 copay when you visit the doctor for an illness or injury then you don't want this type of plan.
  
• These plans don't have a copay for outpatient prescriptions. The prescriptions will usually be covered but the cost will be subject to the plan deductible.
  
• The cost of an HSA qualified plan will be less than a traditional copay plan.

HSA plans are attractive to people who want a tax shelter for money that they can squirrel away for out of pocket medical expenses. So, are HSA plans for everyone. No. They're pretty much a plan for people with higher incomes, higher net worths and a higher tax liability.