It's really quite easy actually…

United Healthcare recently released the results of a survey they did on their HDHP policyholders.  They took a look at the demographics and behavior of depositors and found that 86% of those surveyed opened health savings accounts when their employer contributes on their behalf.  However, only 27% of consumers opened HSAs when their employer did not contribute.

Ok, so if you are new to health savings accounts (HSAs) and your employer offers to contribute to your HSA and you do not open one, I'm sorry, you are probably the biggest LOSER of all losers.  You are being offered FREE MONEY for goodness sakes.  It takes very little time to open an HSA, and many employers will steer you toward the bank of their choice (be careful though, you can put your HSA dollars in any bank that offers them and just because your employer recommends one probably means there is something in it for them as much as you).  This is not "Let's Make A Deal."  If you decline the money, you are not going to be asked if you would like to choose what's behind Door Number 2.  Read between the lines:  TAKE THE MONEY LAZY BONES!

Now, if you are in the 73% of consumers whose employer does not contribute to your HSA and you have, for whatever reason, not opened one, there is hope for you.  Also, we'll cut you a little more slack because you are not being offered FREE MONEY (but you kind of are, and maybe just don't realize it).  First off, you can avoid becoming a LOSER by opening an HSA.  According to the survey 68% of individuals with HSAs actually contribute to them on their own, so half the battle is simply opening the derned things. Once you open one, the law of averages and momentum say you will contribute to it.

I know, but you are saying, why should I?  Well, here's a few reasons that are far better than simply being insulted and called a Loser by a total stranger:  First, you can deduct 100% of the contributions from your federal income taxes up to the annual maximum contribution.  So for example you are single and make say $30,000 per year, your annual maximum contribution is $3,000 for 2009.  If you can squirrel the full $3,000 into your HSA, then your tax base is reduced from $30,000 to $27,000 and you pay federal tax on the lower amount.

But if you are still not sold, here is another reason.  The money sitting in the HSA grows tax free.  So say you put the $3,000 into an account and it earns 2% annual interest over the course of the year you make $60 off your money and the sixty bucks is not taxed when you spend it, provided you spend it on qualified medical expenses.  So if you are thinking $60 is hardly worth tying up $3,000 for I'd say Bully!  $60 would cover a big chunk of a visit to the Doctor if you had to go in for a visit.  Plus, it's FREE MONEY.

Still not sold?  OK here's another reason not to be a LOSER.  Say you wake up one day and want to tell your boss to take his crummy $30,000 a year job and stick it where the flowers can't grow.  If you have an HSA you get to keep it.  Unlike an FSA the HSA is your account, so even if your employer has been funding it, that money is yours to keep.  If your new employer offers high deductible health plans with HSAs, then you simply go on bout your business.  Or if you are an individual and you decide the only boss you want to work for is you, then you can purchase your own HDHP and still keep the HSA you're your original employer.

If you have read this far, hopefully you have learned something and get the picture.  If you have the opportunity to open an HSA and fail to do so, you are not taking advantage of a very important piece of your health care plan.  Go do a little research and then open an HSA.