Quote:A health savings account is not health insurance.   What you are doing is self-insuring at least a portion of the costs that are not covered by your regular health insurance policy.   So you really can't equate what you call the "premium" on your HSA with the premium on your health insurance policy.   They are not the same thing.  

 

You are kind of right, but there is a difference.  Health insurance should not cover or pay for routine health care which is the reason for a HSA.  Health insurance should cover catastrophic and/or unexpected injury or illness.

 

A HSA allows a person to put money aside tax-free for routine medical expenses.  One of the many benefits of it is it can be passed on to family members in the event of your death.  It can be used not only to pay for routine doctor visits (physical, dental checkup, eye exam, etc.), but also medications both prescription and over-the-counter.  Insurance shouldn't pay for such things.

 

If your "insurance" is paying for those things, then it really isn't "insurance".  Would you rather pay a higher premium for your "health care plan", or save the money tax free yourself and be able to leave it to your loved ones?

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