Should a college student invest in a health savings account?
I am 20 years old and I just lost Medicaid under my parents, and my income is too high for it. I earn $1,080 a month.
I have $650 a month in expenses and live on my own. I am about to purchase Blue Cross Blue Shield for individual plans with a high deductible. I try to stay really healthy, eat healthy, but I have chiropractic service needs, 3 bulging discs, and a scoliosis that isn’t moving anymore in my lower spine. I’d rather save in a HSA to pay high for a medical emergency than keep paying a high premium monthly.
I need something with dental, vision, chiropractic, and health. I found out my Medicaid got canceled after I ended up in the ER for stomach problems over the weekend and now have high bills. What do you think?
Sure, an HSA can be a great way for anyone to save on taxes and you have the money earmarked for medical expenses.
American Chartered Bank has $10 application fee and no monthly fee HSA. There are other places with similar costs. You don’t want to go with a brokerage house, their fees are much higher.
You need medical insurance only. Dental & vision insurance do not pay for themselves. Dental pays at most 50% of your services up to a very low maximum ($1000-$2000 typically). Vision is the same. Any serious vision problem you have would be considered medical, anyway. I would say the same is true for chiro. My chiro in LA, charges $100 a visit if you use insurance. His cash price is $30 a visit and less if you purchase “a package”.
Regarding your ER bills: Many hospitals will do big discounts for bills paid within 30 days (25-50%). Or create very easy payment plans – $25 a month for eternity. When you get the bill contact the hospital to find out what they can do for you.
HSA Health Saving Account Investing
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CONSUMERS GUIDE TO HSAS (Brick Tower Press Financial Guide) $4.95 A breakthrough in health care for employees and employers alike, HSAs stand for Health Savings Accounts. As of Januar y 1, 2004, HSAs are a new option, similar to an IRA, offering individuals a tax-sheltered way to accumulate savings. Tax-free dollars in HSAs may be withdrawn for qualified medical expenses, rolled over without penalty for spending in future years, or invested, to accumulate saving… |
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SMALL BUSINESS GT HSAS 2ED (Brick Tower Press Financial Guide) $0.56 HSAs stand for Health Savings Accounts – a new U.S. Government program, similar to IRAs, offering a tax-sheltered way to pay for health care costs and still accumulate tax-free savings for retirement health costs. HSAs became national policy in 2003 and are becoming more popular year by year…. |