That is the question. Like many employees at companies across the country, I was recently presented with the opportunity to switch from a traditional employer-sponsored health care plan to an employer-sponsored High-Deductible Health Plan (HDHP), along with a Health Savings Account (HSA).
Making such a switch seems like a no-brainer for some employees -- particularly those who are young, healthy and single. They might go to the doctor once or twice a year and perhaps have a prescription or two. I breezed through my twenties and most of my thirties seeing a doctor maybe once every three years with an occasional sprained ankle or a sinus infection. If HSAs had been an option back then and I had the foresight to participate, I would have a big, fat tax-free account built up by now. But it is really just in the last year or so that HSAs have become a mainstream alternative.
And while it is an easy choice to make for some people, the choice between a traditional plan or an HSA becomes considerably murkier for middle-aged employees with small children. The employer contribution, the much-lower premiums (from voluntary deductions) and the possibility of significant annual savings make it tempting. But the completely unpredictable near-future medical requirements of a 3-year-old and a 5-year-old -- including one who is currently in the habit of tackling everybody whether the game is football, basketball, hockey or his big sister's dance practice -- make the choice one that I will wait on until at least the next enrollment period.
Am I completely confident this is the right decision? Nope. In researching the issue (in an albeit limited timeframe), I found little in the way of credible counsel either advocating or opposing an HSA for employees with small children. I convinced myself it is the safer decision for my family -- at least for now -- to stay with the traditional plan. In six months I may have a different perspective -- perhaps one influenced by compelling reader feedback on this issue.
I have no doubt more and more of you are putting an increased focus on HSAs as employers increasingly turn to HDHPs and HSAs because they reduce premium costs, promote tax-free savings and help engage employees in their health care decision-making process. And consumers who make the switch seem to be satisfied with the results. According to a new national survey of HSA owners conducted by OptumHealth, 82% are satisfied with their accounts and nearly 75% would recommend them to a friend or family member.
My next enrollment period comes in July. Got any advice?
