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Gaming the HSA System

Article ID: 262
Last updated: 21 Sep, 2014
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By Jason Watson ()
Posted September 15, 2014

As you understand, HSAs are only available in conjunction with a high deductible health plan. The term high deductible means any policy that exceeds $2,500 for a family plan. As you might not be aware, having kids is expensive. Expensive at birth, and it only gets worse- food, cars, house damage, college, etc. But the birth and post natal care is where you can get some HSA help.

Many people will pick a high deductible plan in their pre-children years. This is great. Max out your HSA each year that you can. When you are ready for a family, switch your insurance to a PPO or some other policy that is more robust and more expensive. This protects you during pregnancy, birth and the first 24 months where costs are the highest. Any out of pocket expenses can paid with your HSA funds. Beauty.

Then, when your family medical costs have stabilized, switch back to the high deductible plan.

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