Health Insurance

At work we are implementing a new health insurance program that will allow members to choose between 3 options. The "high", "middle", and H.S.A. options. Based upon an analysis of the numbers, I will be able to save some significant funds by enrolling in the H.S.A. plan. Using past data, I have determined that our family will be able to save approximately $5,700 per year over the "high" plan and $2,300 over the "middle" option. While we are fortunate to have good health and am fairly young and healthy, this may not always be the case. Hopefully, we will have several years of good health and can prepare for any large medical claims.

1. Have an emergency fund for medical expenses.
2. Spend the money to go to the doctor to avoid larger medical expenses later.
3. Fully fund your H.S.A. account which will be $5,950 for family coverage in 2009 and $3,000 for single coverage.
4. Be an informed consumer by minimizing your costs by being aware of special programs like the $4 prescription programs offered by Wal-mart, Krogers, and others.
5. Take care of your body by working out, eating healthy, and dealing with stress in an appropriate manner.

By enrolling in the health savings account (H.S.A.) I plan to fully fund my account by redirecting my premium savings directly into my own health savings account. My employer will contribute $1,200 and I will contribute the other $4,750. My current premiums are $512 per month, of which I will contribute $512 to my HSA each month, until I reach the maximum and then will save the additional funds to pay for any costs that may be above the amount in my account. To be successful this will require discipline to avoid spending these funds on other things that might be more fun, more pressing, or to reduce other debts.