Found this story called “What You Need To Know About Health Savings Accounts for 2009” which is a bit misleading because it’s more of a testimonial than anything. That being said it’s a good read and explains why an HSA qualified plan was better for this family.

On the other hand if we do not incur any unreimbursed medical expenses, we do not lose the money in our HSA. Money that remains in the HSA is allowed to accumulate tax-deferred and can be withdrawn at any time, but would be taxable just like an IRA, including a 10 percent penalty before age 59.5. In addition, an HSA-eligible participant has until April 15, 2009 to make their contribution.

After eight months, we have:

1. Saved $589.68 in premiums
2. Incurred no claims towards the deductible
3. Contributed $5,800 tax deductible into our HSA

Health Savings Accounts are not for everyone, but it’s an option that should not be overlooked.

Since they stayed healthy the entire year if anything were to happen in the coming year the money they already have in the HSA covers the maximum out of pocket for 2009.

Health Savings Account (HSA): Do I Lose It At the End of Each Year?
By Daryl Kulak

The Health Savings Account (HSA) is an amazing tool to reduce
healthcare expenses and insurance costs.  But do you lose it at
the end of each year, like with a Flexible Savings Account (FSA)? (more…)