Why bother with an HSA when you have no employer match and high premiums?
When high health insurance premiums leave little money to spare and employers don't contribute or offer payroll deductions, people struggle to see the point of opening a Health Savings Account. Without extra income or tax advantages to offset the costs, deciding whether to choose a bronze, silver, or gold plan—or whether to save in a retirement account instead—becomes confusing and stressful.
What people tried
Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.
- 1Considering saving in a retirement account instead
- 2Weighing bronze, silver, or gold ACA plans
- 3Checking with the insurer or provider to see if a specific health plan qualifies as an HSA-eligible High Deductible Health Plan
- 4Opening an account anywhere without funds and holding off on contributions until eligible coverage is established
- 5Paying out of pocket with personal funds or credit cards and letting HSA money remain invested
- 6Reimbursing oneself from the HSA at a later date after paying out of pocket
In their words
Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.
“My question is, for the rest of the $750, can I just add that money to my HSA, pay the rest of the bill, and then write off the contributed $750 from my taxes?”source ↗
“I feel like this would essentially mean all money used for medical bills doesn’t have to be taxed, which sounds too good to be true. I’ve tried googling this and I can’t get a straight answer.”source ↗
“Not sure why your searches are not giving you a straight answer.”source ↗
“Our income is low, and we have kids. So we don't really pay much in taxes. I need to decide on a bronze, silver or gold ACA plan soon.”source ↗
“Why would an HSA be useful? There would be no employer contribution or payroll deduction.”source ↗
“If I were to pass away, my husband would probably not want to deal it at all. So is it better to save in a retirement account if there's anything left after the very high premiums?”source ↗
“A little confused by how HSA’s work. Is this an account I can just open? Or does it require a specific type of health insurance plan to have one?”source ↗
Where this came up
People with this problem also raised
- 9Should I invest a lump sum all at once or spread it out?
- 6Am I saving enough money for the future?
- 5Should I switch to a high deductible plan if I need medical procedures?
- 6Should I use my savings or take a loan for college tuition?
- 15Should I lower my retirement contributions to save for a house?
- 4What benefits should I opt-in at work?