How HSAs Work at Saving Money – A Real Life Example

My son rolled in from school yesterday afternoon complaining of aches and pains (as he pretty much does everyday) and me, being the presumably typical dad, promptly ignored it. He did manage to muster the energy to bike down the road to the neighborhood pool, so I went back to work and didn’t give it another thought until momma came home from work and advised me that after having been asleep for two hours, he was running a 102 temperature and I needed to take him to the nearest clinic.

So I rolled the by now clearly sick boy into the car and headed for the “Take Care Clinic” about a mile away located in the Walgreens. It is extremely convenient and at 7:00 at night, it was a total no brainer.

Anyway, I checked him in, gave them my Humana insurance card, and in about 45 minutes he’d been diagnosed and the prescription to take care of his strep throat has been electronically sent to the Publix across the street (sorry Walgreens, but Publix filled the prescription for free plus I was able to load up on Gatorade and Popsicles while I was there).

 My only gripe about the process, is that I am not sure exactly what I am going to have to pay for the visit, because, even though I am obligated 100% for the amount, I couldn’t pay it on the spot because Humana can’t, or won’t, tell the clinic what I am supposed to pay. That’s another rant for another day because that little detail adds to the cost of health care and generally chaps my butt. They will send me a bill eventually and I will pay it. In the meantime I will rationalize it as a free loan.

 The above said, the posted price of the visit was $65 plus the cost of the test, so I’m guessing my visit and the strep test is going to run somewhere between $75 and $100 after the insurance discount. As a bonus I can pay for it from my HSA.

 Now if you are one of those folks who has traditional insurance you might be chuckling at your good fortune, because you would have only had to pay the $25 co-pay for the visit. But I am chuckling at you because unless your employer is a saint, you are having some big chunk of $ taken out of your paycheck each pay period to give you the privilege of that $25 co-pay. In all likelihood, your premiums far exceed my $250 monthly premium (which covers my family of 4). So in the end, I most likely paid less.

Now my insurance plan is less than perfect, but I have saved a ton of money over the past 3 years since I moved out from under my former employer’s COBRA plan and into a high deductible health plan with a health savings account. In addition to the premium savings I have received, my HDHP has provided other benefits including the tax advantaged HSA which have made it a good choice for me. In my plan, I pay for what I use, I have coverage in the event someone in my family has a major medical need, and I have a mechanism to save like crazy.

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