Q:

How do you compare health savings plans?

A:

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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