Example consists of a family of four. Husband and wife are 40 years old, nonsmokers and in good health. The family has an unusually expensive year with five visits to the doctor and one minor outpatient surgery that costs $2,100. Family makes the maximum allowable contribution to their HSA, which is optional. (See note below).
Now what business owner couldn't use an extra sixty-five hundred dollars? And that is with significant medical expenses. If it were a normal year and there was no outpatient surgery, the family would be ahead by an additional $2,100.
And what is their maximum exposure? $5,100 plus the premium of $3,264 or $8,364 while the traditional plan premium alone comes to $11,856 and then there would be deductible, coinsurance and copays after that.
Note: The family is NOT REQUIRED to make the maximum contribution each year. They have a choice of contributing anywhere from $0.00 to $5,100. They could elect to contribute only the amount of their medical expenses ($2,475.00) and hold the other $2,625 in reserve outside their HSA. However, this would lower their tax deduction at the end of the year.
If you would like to see if an HSA would work for you, we need to get some basic information to get started.