Business Week did a special report on Health Savings Accounts this week titled “Health Savings Accounts: More Time, Less Money“. The story takes an even handed look at the advantages and disadvantages of an HSA and how it can work for an individula or a business.
HSAs can be a smart savings tool, particularly for small businesses and self-employed workers who need tax shelters and lower out-of-pocket expenses. That’s why Vijay Goel, 31, of Los Angeles opened up an HSA to cut his health-care costs for his startup, HealthShoppr.com, which helps consumers shop for health-care services online.
Goel says his COBRA insurance, which would have extended coverage for 18 months after he left his job as a McKinsey consultant, cost $450 a month—and it covered only him, not his wife. Instead, he’s spending $200 per month for a plan with a $3,000 deductible that insures both of them. “We’ve gotten our premium way down, which allows us to be protected without wasting tons of money that would go straight to the insurance company,” he says. In addition, since HSA contributions can pay for dental and optometry services, the Goels have eliminated the need to pay for those two areas separately.
Tags: Business Week
