Do you have an HSA and has it worked for you?

Yes.

1. My first HSA was when I worked in North Carolina for a large temp agency that had employees throughout the country. The deductible was $1500. Five weeks after becoming eligible for the HSA, I took a permanent job with another company. The HSA did work for me, but not very well, because I was not there very long. At the time, I was 32. I did receive some education prior to switching. The employer did a video conference and I did my own research on the Internet.

2. Later, while unemployed, I enrolled at my own expense in an individual (not employer) health insurance plan with very low premiums. I received almost no education this time, because I did not have an employer and had already completed my private Internet research. Because the tax deduction for the HSA contribution saves me approximately as much money as the premium costs, I kept this plan (at my own expense) when I found a job, and did not accept my new employer's health plan (which would have made me ineligible for the HSA). I was 33 when I obtained this plan and am now 34 (and still have it).

The reasons that I like the HSA may not apply to your employees:

1. The high deductible does not bother me, because my current medical expenses are less than the deductible on any plan would be.

2. I can afford to contribute several thousand dollars a year (I just contributed $2900 yesterday) to the HSA.

3. I am currently in a high enough tax bracket for the tax deduction to benefit me.

I recommend that your company offer at least one non-HSA plan and at least one HSA plan and allow each of your employees to choose which type that employee wants.

I think companies that don't at least offer an HSA are in the dark ages. I sell group insurance and I have not sold a single plan in the last 24 months that hasn't been an HSA. I have sold a couple individual plans that haven't been, but still the marjority are HSA.

Why on earth would they be 'the devil?' The bottom line is if you could pick up an HMO HSA with a $1200 deductible in lieu of an HMO with no deductible and save more than $100 per month ($100 X 12 = $1200) then why wouldn't you save the money?

And, I'll tell you another item that you'll read on the Internet that is also incorrect. I've also read that if you get sick alot or hardly ever get sick that they're also not as advantageous. Again, it doesn't matter. What matters is what plan is going to leave the most money in your pocket (whether the employee or employer) and the HSA can do that.

You still just have to look at it because if the savings aren't there don't do it -- as I imagine there are states where they don't have competitive plans.

The bottom line IS the bottom line. It's just a matter of education, because I pitched a plan to a company (a small company) and it was going to save them $25,000 each year AFTER they fully funded each employee's account. The employer saved overall and the employee would no longer even pay a copay (since everything would come out of the account) and the employer didn't do it. I was dealing with the HR person and if I was her boss and found out what she passed on I'd fire her. She just didn't get it.

...oh and I'll say about 80% of those groups also balked at the idea at first, but once they got it they went for it.

The previous answer has it mostly correct. One major issue is that an HSA is never FEDERALLY taxed, if used properly. Many States still target it for taxation, but it is still a phenomenal deal. You can also, by the way, contribute more than your deductible: up to $2900 in 2008 for an individual, and $5800 as a family, so if you have qualified expenses after the deductible, you can still use your HSA to pay for them. Anyone can contribute to the Health Savings Account: you, your neighbor, your boss, the strange philanthropist down the street, who ever. The money stays yours, even after you have moved away from the high deductible health plan, or the job that is supporting it. The money in the account rolls over from year to year, accruing interest, and you can continue to add to it until you 1) turn 65 or 2) ditch the HSA-compatible High Deductible Health Plan. If you'd like a more detailed explanation, feel free to contact me and I will be happy to explain any nuances, free of charge or obligation. And, with the RIGHT HSA-compatible health plan, you save a bushel of money, whether an individual, a family, or a business of any size.

I am an health insurance agent and the HSA plans are becoming more popular and will be the future of health insurance as costs increase rapidly.

Benefits of a HSA:

1. tax deferred savings plans

2. contributions are tax deductible

3. low cost high deductible plans

4. able to accumulate a large account for the future higher deductible plans

Disadvantages of a HSA:

1. discourages annual physicals and preventive care

It depends on the insured's: health, age, and amount of savings able to contribute to the plan.

Most people know absolutely nothing about an HSA. It probly is a good deal since you can take out money that is not taxed. A Health Saving Account is money you put in that is not taxed. Then you can take the money out tax free.

I am not that knowable about it. Hope you can get a better answer. Ask your insurance agent for help or call the Insurance Commissioner in your state.