How Do You Compare Health Savings Plans?


Quick Answer

As stated on Bankrate, there are many factors to consider when comparing health savings plans including convenience, access, fees, security and required minimum balance. A health savings plan is an account that is used solely for the purpose of medical expenses. It can be used to pay for recurring, occasional or anticipated medical costs.

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Full Answer

In cases where insurance does not cover enough of a person's medical expenses, he or she may consider investing in a health savings account, or HSA. To ensure it is the most appropriate investment for the person's needs, there are a few points to consider.

  • Convenience
  • Some financial institutions that offer HSAs are large and have convenient locations. Smaller ones may not be as accessible.

  • Access
  • HSA funds can be accessed in a number of ways including debit cards and checks. Others require reimbursement forms to be completed.

  • Fees
  • HSA account fees vary depending on institution. Some have monthly fees while others are a per transaction fee. There might also be a combination of the two at other agencies.

  • Security
  • Any HSA custodian should have a secure website. Another example of an acceptable security level is if the social security number on the account is truncated or encrypted on any documentation.

  • Required minimum balance
  • Most HSAs do not require a minimum balance, but fees may be applied if there is a low balance. According to Bankrate.com, many HSAs will waive fees for accounts with higher balance of $3,000 or $5,000, for example.

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