What are the cons of HSA ?
Is Health Savings Account a wise choice for long run? If a house wants to own a baby is this a right choice? What are other option for a self-employed family team leader?
Answers:
HSA's are a good conception for high-income, low medical expense people. It's a great concept. Since the deposits are predetermined to $5650 for a family surrounded by 2007 (I think it's $5800 surrounded by 2008), however, for a family of child-bearing years, it might be better to look for a plan that have a lower deductible and better payment option.
Find a reputable agent and look at your options. Here are a couple of links, but please sort sure you weigh all of your option. I personally do not resembling HSA's for the average person.
The individual con I can see with an HSA is the big deductible
The purpose of insurance is to manage risks.
If that child is healthy, you're going to enjoy a boatload of expenses. However, if you get insurance to cover that, you're going to enjoy *two* boatloads of premium to pay, because the sale process absorbs 10-20% of the money that comes contained by, and the claims process absorbs another 30-40%. For that common sense, a health funds account make sense for a baby.
On the other mitt, what if, god forbid, your baby is born near a cleft palate, or spina bifida, or hyaline membrane, or some other catastrophic problem?
You need insurance for that. If you and 9,999 other those each chip contained by $1,000 each within premiums, that's $10 million, and by the time the insurance takes partly, that's $5 million available to pay for the things your babe needs, and you could NEVER settle for, even if you lived another 100 years, and you worked 20 hours a day.
A $5,000 debt or a $10,000 debt would be burdensome, but doable. It's the $500,000 hospital bill you obligation to insure for. If you look for a health policy beside a $5,000 or $10,000 deductible, you'll find premiums are relatively low.
So combine your HSA with a high-deductible high-limit form policy.