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Matt Breunig on HSA ＆ FSA: The Welfare System Stole $2k From Me (www.youtube.com)
submitted 11 months ago* (last edited 11 months ago) by davel@lemmy.ml to c/personalfinance@lemmy.ml
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These US healthcare systems are effectively scams. Yes in theory they can save you money, however in theory there is no difference between theory and practice, while in practice there is.

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[-] scytale@lemm.ee 14 points 11 months ago* (last edited 11 months ago)

Haven't had the time to watch the entire video yet, but is there an actual mention of HSA? The video seems to be specifically about FSA and its use-it-or-lose-it policy. I'm currently on an HSA as it seems to be the best option in the current system for someone who is still relatively healthy and doesn't get sick or need to go to the doctor often. I'd be curious to know what the risks are.

[-] davel@lemmy.ml 10 points 11 months ago

Unfortunately his talk is almost entirely about FSA. Here’s a word of caution about HSA from CNBC: 91% of people with health savings accounts make this mistake

  • Just 9% of health savings account owners invest a portion of their funds, according to the Employee Benefit Research Institute. The rest, 91%, hold cash.
  • Ideally, savers would treat HSAs like a retirement account, by investing for future health costs in old age.
  • However, HSA investing may not be available to everyone. Doing so would mean paying out of pocket for short-term health expenses to let money grow.

The private financial company—which you don’t get to choose—gets its cut as well, in fees, some which are hidden.

I’m currently on an HSA as it seems to be the best option in the current system for someone who is still relatively healthy and doesn’t get sick or need to go to the doctor often.

It’s a gamble we shouldn’t have to be making. We’re healthy until we’re suddenly, unexpectedly not.

[-] HubertManne@kbin.social 6 points 11 months ago

this is ridiculous. hsa funds are used by people of modest means in the year it is taken out. If any is saved its in simple interest or very conservative investments. if you lucky enough to not have health care costs for enough years, then you can start investing like its an ira which it actually is. In retirment it can be used for any purpose.

[-] IHawkMike@lemmy.world 3 points 11 months ago

The private financial company—which you don’t get to choose—gets its cut as well, in fees, some which are hidden.

Not disagreeing with anything, but people should know that even if you're locked into a crappy HSA provider through your employer, like BenefitWallet, you can and should still open an HSA with a good provider, like Fidelity, and max out and invest contributions there.

Just don't forget to save all the receipts for out-of-pocket health expenses.

[-] ccunning@lemmy.world 3 points 11 months ago

You can also transfer your funds from you company’s shit provider to your own HSA account.

[-] reattach@lemmy.world 4 points 11 months ago

I didn't watch the entire video either, but early he talks about HSAs in the context of which types of FSA is available for people on high- deductible plans with an HSA.

[-] porcupine@lemmygrad.ml 1 points 11 months ago

HSAs are mentioned towards the middle in listing the complications of FSA variants

this post was submitted on 15 Nov 2023
28 points (81.8% liked)

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